Digital First Media won the Boston Herald in a 5-hour bankruptcy auction with a top $11.9 million bid that all but settles who will carry the news organization into the next chapter of the city’s media history.
The newspaper company, which operates as Media News Group and owns hundreds of publications across the country, including the Denver Post, bested two other suitors — GateHouse Media and Revolution Capital. Digital First also owns the Lowell Sun and the Fitchburg Sentinel & Enterprise in Massachusetts.
The result of today's auction was confirmed by the Herald’s bankruptcy lawyers at the firm Brown Rudnick. The auction was held at the firm's offices in Boston.
The high bid is subject to court approval, and a hearing is set for Friday in federal bankruptcy court in Delaware.
The newspaper company’s operations chief Guy Gilmore said in a statement Digital First is “pleased to have the opportunity to be a part of the Boston Herald through the next chapter of its storied history. The Herald is integral to the fabric of the great city of Boston.”
GateHouse Media was the first to bid in December at $5 million, followed by a $5.75 million bid by Revolution Media Group, a Los Angeles private equity company.
The Herald and its unions, avoiding a potential conflict, agreed to a deal that requires bidders to hire at least 175 of the newspaper’s current employees, recognize those employees accrued paid time off and honor their years of seniority under whatever new benefits the company establishes.
Bidders not willing to abide by those conditions could instead pay $7 million earmarked to employees paid time off and severance.
The Herald has a newspaper, website and Boston Herald Radio, as well as numerous social media platforms.
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