DAYTON, OHIO — On Monday, Sept. 23, 2019, the Third Circuit of the U.S. Court of Appeals remanded — and erased — rule changes enact by the FCC under Chairman Ajit Pai that had said goodbye to 44-year-old cross-ownership restrictions in a given market.
The move put Cox Media Group in a quandry, as it moved forward with its acquisition by Apollo Global Management and subsequent loss of grandfathered ownership status of a daily newspaper, a TV station, and radio stations in the Dayton-Springfield market.
Many worries were expressed about a decision by CMG to cut daily circulation of its three newspapers in the Dayton DMA impacted by the Third Circuit remand. The Mayor of Dayton and a former FCC Commissioner voiced their opinions in a USA TODAY editorial slamming the Commission for approving the CMG/Apollo deal for its negative impact on daily newspapers in the market.
Now, it has a solution: Keeping the newspapers in the family, but under a wholly different ownership group — allowing the publications to retain their everyday appearance.
In a Monday announcement (2/10), Cox Media Group revealed that it has reached an agreement with formerly related entity Cox Enterprises Inc. for the Dayton Daily News, the Springfield News-Sun, and the Journal-News, which serves Butler County and the cities of Hamilton and Middletown, Ohio.
The announcement from CMG explained that the sale was prompted by the Third Circuit decision, which reinstates rules that prohibit a single owner from operating both a daily newspaper and a broadcast station in the same market.
In Dayton, CMG dominates the TV landscape with CBS affiliate WHIO-7. It also owns top-rated Country WHKO-FM “K99.1,” News/Talk WHIO-AM & FM and WZLR-FM 95.3/101.1 “The Eagle,” a Classic Hits simulcast.
Because of that ownership, CMG had two choices — cut the daily circulation to non-daily status, or sell them to an owner “that would not be encumbered by the antiquated cross-ownership rule.”
That owner, appears, will be Cox Enterprises, the Dayton-founded entity that under James M. Cox acquired the Dayton Evening News on Aug. 15, 1898, and renamed it one week later.
“These papers have been established as leading news sources in the communities they serve for more than a century and this transaction is the best possible outcome to ensure they can continue providing uninterrupted news coverage to their readers,” Cox said.
Further commenting on the sale, for an undisclosed price, is CMG CEO Kim Guthrie. “These newspapers are important assets to the communities they serve, and we are thrilled to have found a partner with a long and successful history of promoting freedom of the press and preserving print journalism. CEI shares our belief that a reduced print schedule would negatively impact the papers, our employees and the communities. CEI is the best possible partner for this sale to not only ensure continued daily print publication for the newspapers, but to also keep so many talented people doing what they do best—providing daily news coverage in our Ohio communities.”
David Sambur, co-lead partner of private equity at Apollo Global Management, also chimed on the sale. “Apollo is committed to strengthening local media,” he said. “When faced with the unfortunate requirements of an antiquated regulation, we would not accept an outcome that reduced local news coverage for the people of Dayton, Springfield and Butler County. We applaud the FCC for working with us and providing us the flexibility to find a stable, long-term buyer who is committed to providing the citizens of Ohio with award winning journalism.”
Following the sale, the Ohio newspapers will be under the interim operational leadership of Jana Collier, who currently serves as VP/Content at CMG Ohio. Jana, who will serve as interim Executive Editor, is a seasoned media veteran with more than 20 years of experience and started her career with Cox in 2006 as the managing editor of the Dayton Daily News.
“Dayton, Ohio is a big part of the Cox DNA — It’s where our family is from and where our company was founded,” said Alex Taylor, President and CEO of Cox Enterprises. “So it is with great excitement that we continue publishing these papers as we have for more than 100 years.”
The sale of the papers to CEI is expected to close in the coming weeks.
Streamline Publishing’s Radio + Television Business Report maintains sales and management offices in the greater Dayton area.
