Cox announces intention to sell newspapers

Cox Enterprises Inc. announced today that it intends to sell all of its stand-alone community newspapers, including those that comprise Cox North Carolina Publications Inc. — The Daily Reflector in Greenville, The Rocky Mount Telegram, The Elizabeth City Daily Advance and 10 associated non-daily community newspapers.

The Greenville-based commercial printing facility, Savings Source Direct of Tarboro and other affiliated publications also are included in the sale.

Other Cox properties to be sold are the Austin (Texas) American-Statesman and six daily newspapers in Colorado and Texas. Cox also intends to sell Valpak, the nation’s leader in cooperative direct mail advertising.

Cox Enterprises will retain ownership of The Atlanta Journal-Constitution, The Palm Beach Post, Dayton Daily News and their affiliated publications.

“This decision was made as part of an ongoing strategic review of our portfolio and enables us to maintain our strong and stable financial performance by further paying down debt,” said Jim Kennedy, chairman and chief executive officer of Cox Enterprises. “We will continue to own and operate industry-leading companies, invest in existing businesses and maintain a level of financial discipline that ensures we are well positioned for ongoing success.”

Approximately 80 percent of Cox Enterprises’ revenues now come from sources other than its traditional advertising-supported media companies (newspapers, television and radio).

“We are proud of the growth we have experienced in the 12 years of Cox’s ownership of these properties,” D. Jordan Whichard III, publisher of The Daily Reflector and group publisher and CEO of Cox North Carolina Publications Inc., said today. “Throughout this sale process, we will continue to operate our eastern North Carolina newspapers, Web sites, direct-mail marketing and commercial printing businesses as we always have, focused on providing our audiences, advertisers and other customers with the high quality news, information and other services they have come to expect.”

Moving forward, Cox Enterprises will continue to strengthen its portfolio of businesses by making significant capital investments that improve their competitive positions. Recent examples include an investment to develop next-generation wireless and mobility services for Cox Communications Inc. and investments in technology, global expansion and innovative products at Manheim, which is transforming the wholesale vehicle buying and selling experience.

“Newspaper businesses are an important part of Cox’s history, and we greatly value the contributions the employees of these companies have made to our company,” Kennedy added. “Local newspapers play a valuable role in the communities they serve, and we are confident that the publications we are selling and those we continue to operate will continue to provide timely, valuable and trustworthy news and information to their readers.”

The company and its advisers are preparing information in connection with the sale of these assets and expect to be in a position to share information with prospective buyers in September.