Digital First Media to explore strategic alternatives

Digital First Media has announced that its Board of Directors has initiated a process to evaluate and consider strategic alternatives for the company's business. DFM was formed through the merger in December 2013 of Media News Group and the former Journal Register Company.  Its portfolio of 800 multi-platform news and information products span 15 states and include 76 daily/Sunday newspapers, 160 weekly publications as part of serving 75 million customers monthly.

John Paton, DFM's chief executive officer, said, "The news information industry in America is undergoing a period of seismic change, defined by the need to consolidate to rapidly compete in a digital world. The companies that will succeed are those which have meaningful scale and digital expertise. By anticipating the rapid revolution in our industry and responding to stay ahead of the curve, DFM has clearly emerged as a leading player, based on the high quality of our assets and the extensive work we have done to transform them into multi-platform products that deliver outstanding local news and exceptional opportunities for advertisers."

"As a result, we believe we have many options available to us to maximize the value of our businesses for our stockholders, and the Board of Directors has therefore decided to assess the full range of those opportunities," he said.

The company noted that strategic alternatives may include, but are not limited to, the sale of the company as whole, the sale of one or more regional clusters, or the continued execution of its business plan.

The company said that there are no assurances that the process will result in a transaction(s) or on the terms or timing of such a transaction(s), if undertaken. Further, the Board has not set a definitive schedule to complete its review process. It is the company's intention not to disclose developments with respect to the strategic review process until the Board has determined whether it will proceed with one or several transaction(s), or otherwise concludes its review.

UBS Securities LLC is serving as financial adviser to the Board and Hughes Hubbard & Reed LLP is serving as its legal adviser.