Why did secret investors pay $140 MILLION for the Las Vegas Review-Journal?

[Newsjock]

Source: Las Vegas Review-Journal

Thursday's sale of the Las Vegas Review-Journal left staffers, and readers, with a lot of questions. Perhaps foremost among them: Who now owns Nevada's largest newspaper. ... What is known: News + Media Capital Group LLC — a newly formed Delaware-domiciled company backed by "undisclosed financial backers with expertise in the media industry" — paid $140 million for the Review-Journal and its sister publications.

That's around $38 million more than New Media Investment Group paid for the all of Stephens Media LLC, a national chain of newspapers that included the Review-Journal, eight other dailies and 65 weekly newspapers. The amount points to investors with deep pockets and a perhaps even deeper desire to own Nevada's biggest newspaper even though the paper's revenues, like those of all print publications, have been in decline.

... The timing of the transaction might also raises questions about the new owners' possible political motivations.

"One of the first thoughts I had was: Nevada is an early primary state. The Review-Journal is the largest newspaper in the state. Was it sold to a player in that event, or people who want to be players?," asked media critic and New York University professor Jay Rosen. "That slightly conspiratorial thought may be way off base. Of course, there is no way to know as long as the ownership remains hidden. That's the point."

Read more: http://www.reviewjournal.com/business/unidentified-buyer-paid-140-million-las-vegas-review-journal

[yeoman6987]

1. Newspapers are dying

Once gone, the tree will be happy. I personally can't wait for the day the last one closes down. I haven't read a newspaper since my last flight.

[Newsjock]

2. So, then, why is the LVRJ suddenly "worth" $140m?

That's the mystery question. Sheldon Adelson? Kochs? Karl Rove? Somebody thought it was very important to control this editorial voice (which was already resolutely conservative), and at that purchase price, the chances of them ever turning a profit seem to be slim to none.

[yeoman6987]

6. I don't care. Maybe they will be the last to go.

It may take 10 years but it's time. Everything in the paper is so old by the time the customer gets it.

[tkmorris]

3. Nah, $140 million for such miniscule influence on the primary makes no sense

I don't know what does frankly, but paying such an inflated amount to influence politics doesn't smell right. There are far better ways to spend that money if that is your goal.

[AZ Progressive]

4. Nevada is part of the blue wall

If it can get snatched by the GOP, it gives the Republican candidate more of a chance to win.

[rockfordfile]

5. interesting to hear more about "secret investors"