Moron that later

Iphones. The blogosphere. Twitter. All have been blamed for the transformation of the newspaper industry into something more suitable for a museum.

Here's another reason: We're living in a country of morons.

A longtime friend of mine, Gordon Murray - has dedicated his life to journalism for more than 30 years, was playing poker with some neighbors the other night when a young, allegedly attractive woman walked in. (This is a true story, so don't expect a punch line.) When she found out Gordon worked at The San Diego Union-Tribune, she quickly boasted that she had no need for newspapers. No need for TV news. No need for television. No need for National Public Radio. When more than a few people pointed out that she might want to rethink her strategy of becoming informed, she was quick with a retort:

"I'm smart. I'm pretty. And that's all that matters!"

Speaking of morons, reading the various Internet postings about the UT's pending sale to Platinum Equity is further proof that any idiot can become a blogger. For example, one posting that has been getting a lot of attention - even though it was based on nothing but a few beers and some good heroin - suggests the paper sold for less than $15 million. This poor bloke obviously has no clue that the UT's headquarters alone - situated on prime property in a premier location in one of the world's most beautiful cities - is worth several times more than that, recession be damned.

For those who missed it, by the way, here is what was released yesterday:

Platinum Equity to Acquire The San Diego Union-Tribune from The Copley Press, Inc.

SAN DIEGO and BEVERLY HILLS, CA – March 18, 2009 – The Copley Press, Inc. and Platinum Equity announced today that they have signed a definitive agreement under which an affiliate of Platinum will acquire San Diego’s leading daily newspaper, The San Diego Union-Tribune.

The transaction, which is expected to be completed during the second quarter, culminates a sales process that began in July 2008 when Copley announced it had engaged an adviser to explore strategic alternatives for the newspaper.

Harold W. Fuson, Jr., executive vice president for Copley, said that Platinum Equity emerged from that process as the bidder best equipped to ensure that the Union-Tribune – which last changed owners in 1928 – maintains its position as one of San Diego’s leading community institutions.

“This is a vital business with a long tradition of public service and a preeminent position in one of America’s finest media markets,” Mr. Fuson said. “At this important juncture, we believe that Platinum Equity is the right partner for the Union-Tribune, its employees and the San Diego community.”

Platinum is a private equity firm that specializes in acquiring businesses facing complex operational challenges in declining or transitioning markets. Louis Samson, the Platinum Equity principal leading the acquisition, called the Union-Tribune “a good fit for Platinum” and its operations-focused approach.

“We have a long history of creating value by helping established companies navigate difficult market transitions,” Mr. Samson said. “The Union-Tribune is more than a business, it’s an institution in San Diego. But it faces enormous challenge in a period of tremendous upheaval for the newspaper industry. We will bring a strong operational focus that helps ensure the Union-Tribune not only survives in this market, but thrives.”

The Platinum team includes David H. Black, an experienced newspaper owner and operator whose holdings include more than 150 newspapers and websites in the United States and Canada.

“The Union-Tribune is a premier media property in an outstanding market,” Mr. Black said. “We are extremely excited about partnering with the management team and dedicated employees of the Union-Tribune, and building this franchise for the future.”

Financial terms of the transaction were not disclosed. Evercore Partners and Munger, Tolles & Olson LLP advised Copley on the transaction. Platinum Equity was advised by Hughes Hubbard & Reed and Alvarez & Marsal’s Transaction Advisory Group.

About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.