For the past several months, the Boston Globe has been playing catch-up to the Herald in covering the sale of the feisty local tabloid.
Today the Globe caught up.
Under the unusual byline “Globe Staff,” the stately local broadsheet reported the details of yesterday’s bake sale.
Bidding for Herald jumped by millions at auction
Digital First Media is poised to become the new owner of the Boston Herald after besting competitors with multiple higher bids during a bankruptcy auction Tuesday that netted nearly $12 million, according to newly filed court documents.
A transcript of the auction held in the office of Herald law firm Brown Rudnick revealed that Digital First opened with a bid valued at around $7.6 million — higher than the offers already in place from two other competitors, GateHouse Media and Revolution Capital Group.
After GateHouse countered Digital First with a slightly higher offer, Revolution Capital dropped out, leaving the two competitors to trade bids several times until Digital First’s final offer proved too rich for GateHouse, according to a transcript of the auction filed with bankruptcy court in Delaware.
And Digital’s final offer? “The Denver-based company, which owns daily and weekly newspapers in Colorado, California, Massachusetts, and several other states, prevailed with a final offer of $9.6 million in cash, $1 million in accrued paid time off to employees, and another $1.4 million in assumed liabilities.”
Crosstown at the Herald, reporter Brian Dowling didn’t have those numbers, but he did spotlight what exactly that breakdown means.
This year, the pension, severance and retirement payments to employees were estimated to reach $3.5 million, according to court papers. The pension, severance and retirement accounts had accrued nearly $25 million in liabilities when the company filed for bankruptcy.
Obviously $2.4 million isn’t gonna put much of a dent in that. Dowling also reported that Boston Mayor Marty Walsh is “urging Herald ownership to strike a deal to save workers’ pensions.”
All due respect, Mistah Mayah, the corn is off the cob – unless the bankruptcy judge steps in to change the deal. We’ll find out tomorrow.