PHILADELPHIA, May 23 /PRNewswire/ -- Philadelphia Media Holdings, LLC,
a private investment group led by advertising executive Brian P. Tierney
and Bruce E. Toll, a co-founder of Toll Brothers Incorporated, today
announced that The McClatchy Company has accepted its bid of $515 million
in cash and $47 million in assumed pension liabilities to acquire The
Philadelphia Inquirer, the Philadelphia Daily News and related media assets
including Philly.com.
    Philadelphia Media Holdings was formed in 2006 for the purpose of
acquiring the Inquirer, Daily News and related online assets, and is
comprised of local Philadelphia-area investors.
    "This is a day of immense pride and heartfelt excitement. The next
great era of Philadelphia journalism begins today," said Philadelphia Media
Holdings chief executive Brian P. Tierney. "Newspapers represent a civic
trust, and we believe that trust is best held in the hands of local
investors who have a vested community interest in their success. We are
ecstatic about the opportunity to return the ownership of these great
newspapers to a family of civic minded, long-term investors. History is
punctuated with many stories about the success of local and family
ownership in the newspaper industry. We have one goal - growth. We believe
that revenue can be significantly enhanced through even more aggressive
marketing that will boost circulation and advertising both in print and on
the web."
    In addition to Mr. Tierney, Chairman of Tierney Holdings, who will
serve as Chief Executive and Mr. Toll who will serve as Chairman,
Philadelphia Media Holdings investors include Leslie A. Brun, Chairman and
CEO of Sarr Group, LLC, a diversified holding company; the Carpenters
Pension & Annuity Fund of Philadelphia & Vicinity; Katherine D. Crothall;
Bill Graham, CEO of The Graham Company, a large regional Philadelphia-based
insurance brokerage firm; Michael Hagan, Chairman and CEO of NutriSystem,
Inc.; and Patricia Harron Imbesi, principal of Patriarch Media LLC.
    "I am thrilled to be a part of this investor group. I have had a long
and productive relationship with these newspaper brands for many years,"
said Bruce E. Toll. "The Inquirer, Daily News and Philly.com have played an
instrumental part in the growth of my businesses, and I look forward to
offering this perspective to other businesses to show how they too can grow
by leveraging the power of these media properties."
    On the topic of journalism, Mr. Tierney said, "These are two of the
greatest newspapers in America. They have proud histories which include
Pulitzer Prizes and many other prestigious awards. We have no intention of
meddling in editorial decisions other than continuing to improve the
quality of the report. Our hope is to grow so that we can invest even more
in the information and newsgathering capabilities of these newspapers and
online assets.
    "I am also delighted with the strong start of what will be a long and
positive relationship with representatives of the Council of Newspaper
Unions, which produce these newspapers. Together, we will develop a
platform for growth that will create new opportunities for our employees,
our readers, and our advertisers both in print and online. We can
accomplish great things together if we are focused on the common goal of
producing the finest newspapers and web-based information in the country,"
Mr. Tierney said.
    "We are happy to hear that ownership of the newspapers is coming back
to Philadelphia. We were especially pleased to hear that this team wants to
get the papers back to their glory years of the recent past," said Joe
Lyons, President of The Philadelphia Newspaper Council of Unions.
    Philadelphia Media Holdings was advised in this process by a number of
industry and professional advisors, all with deep experience and
complementary skills. They included Doug Alexander of the Internet Capital
Group; Frank Bourlon of the Newspaper Production and Research Center;
Andrew Buchholtz, investment banker formerly with Veronis Suhler Stevenson;
Vincent Burke of Smart and Associates (accounting/benefits/taxes); Mike
DiPiano of NewSpring Ventures (financial modeling/investment); Dilworth
Paxson LLP (legal); Sam McKeel, former Publisher, Philadelphia Inquirer and
Daily News; Gordon Medenica, newspaper acquisition consultant, former New
York Times Company chief strategist; Chuck Miller, former Washington Post
Company Chief of Operations; Bill Sabatino, former Chief of HR and Labor
Relations for PNI; Richard Thayer, former Managing Director, J.P. Morgan
(leveraged finance); Jerry Tilis, newspaper consultant, former Knight
Ridder Chief of Advertising and Circulation; and Devine & Powers
Communications Group, LLC.
    About Philadelphia Media Holdings, LLC
    Philadelphia Media Holdings, LLC is a private investment group formed
in 2006 for the purpose of acquiring The Philadelphia Inquirer, Daily News,
Philly.com and related online assets. The diverse group includes civic,
labor and corporate leaders, entrepreneurs and private investors who share
a commitment to high-quality, locally owned journalism.

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