Telegram parent being outbid for Boston Herald
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The Herald's offices in Boston's Seaport neighborhood. The newspaper has shrunk considerably since its peak in 2000.
A Los Angeles-based investment group has filed a $5.75 million bid to purchase the Boston Herald newspaper in an attempt to outbid GateHouse Media’s $5 million offer.
Revolution Capital’s bid tops GateHouse’s initial offer with a $3 million cash pledge, $2 million in severance for employees and $750,000 in accrued paid time off for employees who are offered jobs after the sale, the Herald announced Tuesday.
GateHouse media is the owner of several local newspapers in Massachusetts, including the Worcester Telegram & Gazette, MetroWest Daily News and Milford Daily News.
In a Tuesday court filing, Communication Workers of America, which represents 114 Herald employees, said it supports Revolution’s bid over GateHouse’s offer, citing the firm’s offer of $2 million in severance liabilities and $750,000 for paid time off - $250,000 more than GateHouse offered.
Revolution asked the bankruptcy court to deny a $200,000 fee requested by GateHouse if a higher bidder is accepted.
The firm was founded by Scituate native Robert Loring, a former intern at the paper’s sports desk after graduating from Boston College. He attempted to buy the paper in 2013, but the deal fell through.
Loring’s company said it plans to keep 175 of the Herald’s 240 employees - identical plans to Gatehouse. The bid says Revolution will not assume collective bargaining agreements with the paper’s unions, the Herald said.
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