GIVEN THE collapse in newspaper advertising revenues in the past six months, Johnston Press did well to elicit three bids for its Irish regional newspapers.
If none of those offers materialises into a serious bid come the end of April, there are believed to be another dozen or so parties waiting in the wings to pick off individual titles.
John McStay and Richard Findlay, two of the shortlisted bidders, have long experience of the regional newspaper business but you still can’t help wondering why they would want to buy the entire group of 12 titles at a time when ad revenues are in freefall and rural areas are being rocked by ongoing job losses.
You have to wonder, for example, what impact the closure of Dell Computers and the companies indirectly linked to it in the area will have on the Limerick Leader, one of the bigger titles in Johnston Press’s Irish stable.
The fact that The Irish Times, Independent News Media and Thomas Crosbie Holdings showed little or no interest in the sales process tells its own story.
It remains to be seen what price debt-laden Johnston Press might achieve for its Irish papers.
Initial reports suggested up to €80 million, a significant haircut on the €250 million the Scottish media group paid to buy them.
It now seems more likely to be between €30 and €40 million.
And even that price level might be optimistic.
