Guy Gannett Sale: The Transition to Blethen Maine Newspapers
In 1998, a significant shift occurred in the landscape of Maine's media industry when the family trust overseeing Guy Gannett decided to sell the company. This decision sparked concerns among local journalism leaders regarding the future of community-focused reporting. Curt Hazlett, the managing editor of the Press Herald, expressed worry that a corporate buyer might prioritize profit over the "fat" newsrooms—well-staffed editorial teams—that had allowed the family-owned papers to cover their communities comprehensively.
The Search for a Compatible Buyer
While the trust received offers from large entities like the Journal Register Company and MediaNews Group—both of which held strong assets in neighboring Massachusetts—the management of Guy Gannett sought a buyer with shared values. This search led them to The Seattle Times Company.
Despite having operated exclusively within Washington state until that point, The Seattle Times Company was led by the fourth generation of the Blethen family. The Blethens possessed deep ancestral roots in Maine, creating a cultural and emotional alignment with the Guy Gannett papers.
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The Blethen Connection
The acquisition was driven by a personal connection. Blethen noted an emotional tie to the region, fostered by family pilgrimages to the home of his ancestor, Col. Alden Blethen. Before purchasing The Seattle Press-Times in 1896, Col. Blethen had served as a lawyer and schoolteacher in Maine.
Restructuring and Financials
Following the acquisition, several prominent publications were reorganized into a new independent division of The Seattle Times Company known as Blethen Maine Newspapers. This division included:
- The Portland Press Herald
- The Kennebec Journal
- The Maine Sunday Telegram
- The Morning Sentinel
- Various associated weekly publications
Although the official price of the transaction was not disclosed at the time, company documents later estimated the deal to be worth approximately $213 million.
Diversification of Assets
The sale of the newspaper division was only the first part of the trust's divestment strategy. Just one week after the agreement with the Blethen family, Guy Gannett sold the majority of its television stations. This second transaction was a deal with the Sinclair Broadcast Group valued at $310 million.
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Key Facts
- Sale Year: 1998
- Newspaper Buyer: The Seattle Times Company (as Blethen Maine Newspapers)
- Estimated Newspaper Price: $213 million
- Television Buyer: Sinclair Broadcast Group
- Television Sale Price: $310 million
- Key Publications: Portland Press Herald, Kennebec Journal, Maine Sunday Telegram, and Morning Sentinel
| Asset Type | Acquiring Company | Estimated/Actual Value | Resulting Entity |
|---|---|---|---|
| Newspapers | The Seattle Times Company | $213 million | Blethen Maine Newspapers |
| Television Stations | Sinclair Broadcast Group | $310 million | N/A |
Frequently Asked Questions
Why was there concern about the sale of Guy Gannett?
There were worries, specifically from editors like Curt Hazlett, that a new outside owner might reduce staffing levels and compromise the quality of community news coverage that had been maintained under family ownership.
Why did The Seattle Times Company win the bid over other companies?
The Blethen family, who ran The Seattle Times, shared similar values with the previous owners and had deep ancestral ties to Maine, which created a strong emotional connection to the region.
Which newspapers became part of Blethen Maine Newspapers?
The division included the Portland Press Herald, the Kennebec Journal, the Maine Sunday Telegram, the Morning Sentinel, and several associated weekly papers.
How much was the newspaper deal worth?
While not publicly disclosed initially, company documents later estimated the sale price at $213 million.
What happened to the Guy Gannett television stations?
Most of the television stations were sold to the Sinclair Broadcast Group for $310 million, a deal finalized one week after the newspaper sale.