NORFOLK
The decision to market Landmark Communications Inc. – parent of The Virginian-Pilot and employer to more than 9,000 – came down to one person: Frank Batten Jr.
Batten, who took over leadership of the family-run media company from his father in 1998, said Thursday that he first considered the idea – and then chose that course – in November. But he repeatedly refused to say why.
“It was my decision,” said Batten, 49, who controls a majority interest in the privately held company. It was approved, he said, by family members, including Frank Batten Sr., without dissension.
“There was consensus among all of the family members that this was the right course of action to explore,” said Batten, Landmark’s chairman and chief executive officer.
Landmark confirmed media reports late Wednesday that it had hired two national investment firms, JPMorgan and Lehman Brothers, to “assist in exploring strategic alternatives, including the possible sale of the company’s businesses.”
A formal announcement to employees at all Landmark properties nationwide was made Thursday.
Company revenues topped $2 billion last year. A sale of all, or some, of Landmark’s properties – which include The Weather Channel in Atlanta and Dominion Enterprises – could occur as soon as summer, Landmark executives said.
They stressed that enlisting the investment firms didn’t guarantee that Landmark would be dismantled. But even while discussing why he couldn’t disclose his reasons, Batten suggested that the goal was to release its holdings.
“In a sales process, it’s best not to talk about the sales process,” he said. “We’re just going to explore our alternatives and decide as time goes on.”
The greatest share of Landmark’s profits, Batten said, comes from The Weather Channel, which reaches about 97 million households and celebrated its 25th anniversary last year. The station, combined with Landmark’s other weather-related businesses, could fetch roughly $5 billion.
Next largest, Batten said, is Dominion Enterprises, a conglomeration of publications and Web sites ranging from employment to real estate, housed in a one-year-old, 20-story building on Granby Street. Its annual revenue nears $1 billion.
Coming in third is Landmark’s collection of newspapers, including The Pilot and The Roanoke Times, and television stations in Las Vegas and Nashville, Tenn.
“I’m very optimistic that this is the right thing for our shareholders,” Batten said, “and that all of our businesses will prosper, grow and do well under new ownership.”
The several hundred shareholders include family members, some longtime employees and executives, and former Landmark workers, with about 15 individuals or personal trusts having 1 percent or more outstanding stock.
The announcement, coming during a depressed period for the newspaper industry, confounded some media researchers. But John Morton, a veteran newspaper analyst and president of Morton Research Inc. in Silver Spring, Md., said the Battens might have chosen to act before profit margins erode further.
Frank Daniels Jr., a former newspaper publisher and former member of Landmark’s board, also said this could be a good time to sell Landmark, which he described as a “very well-run company.”
“I don’t see any uptick in the future” for newspaper companies, Daniels said. “The smartest thing they did,” he said of Landmark, “was continue to invest in 'new media’ and not buy any more newspapers.”
Batten, however, predicted a robust 2008 for Landmark.
“The company’s doing very well financially,” he said. “We’re seeing very positive trends in a number of our businesses.”
Landmark, Batten said, has “great businesses, and a lot of people will be interested.”
Perhaps the only safe prediction, given Landmark’s vast array of holdings, is that no buyer would likely want the entire company. Even if Landmark sells its four midsize daily newspapers, it’s impossible to predict whether they would be bought as a group or individually.
Batten said he would steer clear of “inappropriate buyers,” without elaborating.
Landmark, he said, will try to safeguard employees’ defined-pension benefit plans. As for the future of workers under new owners, “certainly my hope will be as few layoffs as possible,” Batten said. “I don’t anticipate large layoffs in the community.”
Batten said he brought up the decision to explore selling the company at Landmark’s Nov. 30 board meeting, and there was no disagreement.
He described it as “an emotionally difficult decision for everybody, including me, and especially for my father, who’s worked in the company for more than 50 years.”
Frank Batten Sr., the nephew of Landmark’s founder, Samuel L. Slover, is credited with building up the company during his 44-year run as its chief executive.
A message left for him was not returned Thursday. Although Batten, who will turn 81 next month, has suffered from a number of ailments in recent years, his son described him as healthy and fully recovered from a broken hip.
Two other Landmark board members declined to comment Thursday.
The decision to explore selling Landmark was a closely held secret. Several people who own shares of nonvoting stock in the company said they did not know about it before the announcement.
Daniels said the sale of the entire company was never discussed during his 25 years on the board. He stepped down in April 2006.
“There were some discussions about selling The Weather Channel, but they never progressed very far,” said Daniels, former publisher of The News & Observer in Raleigh, N.C.
Daniels experienced a similar turn when the Raleigh paper, which was owned by his family for 101 years, was sold to McClatchy Newspapers in 1995.
“There were a few good years ahead for the company when he sold it,” he said. “Times are different now.”
Sitting in his third-floor office, overlooking Brambleton Avenue, Batten said his future, like the company’s, was undecided.
“My complete focus is on running Landmark,” Batten said. “I don’t know what I’ll do next. I’m just trying to do a good job for our shareholders.”
Staff writer Tom Shean contributed to this story.
Philip Walzer, (757) 222-3864, phil.walzer@pilotonline.com
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CS
Tidewater is not a fairly "conservative" area, Virginia Beach is a fairly "conservative" city. Every other city besides maybe Chesapeake is decidedly liberal. Id say, if you take the Tidewater region on a whole, its probably very close to 50/50. South Hampton Roads is probably more conservative simply for the fact it contains two of the biggest cities in the state, and both lean right. If you dump Hampton and Newport News in the mix and further out areas such as Franklin and Smithfield......the area suddenly becomes a whole lot more liberal.
SKOOPS88
Sorry SKOOPS, was it the following you were referring to?
"Both sides" applies to TWC too
Submitted by db on Thu, 01/03/2008 at 10:25 am.
Here's hoping the sale of TWC creates opportunities to debate climate elitists (need I name names?) on-air about man-hyped global warming..."
It was 27 posts below yours. I didn't see it. I can't disagree with the sentiment, though. Wouldn't you like to see a legitimate scientific dbate about global warming? I sure would!
Remember, it's still just a *theory* and hasn't been conclusively proven. Don't you find it odd that the division falls along partisan lines? It's a political issue, not a scientific one. But again, I would love to have a legitimate scientific debate to discuss if global warming is man made or a natural cyclical event and, in either event, can man reverse it?I'll stop posting on this topic in this forum.
Sorry I didn't see the earlier post
Read B4 you comment on a comment...
chazbo, If you were to read the comments before mine your would have seen what I was talking about...
The Sale of Landmark
I'm so sorry to hear of the possible sale of Landmark by the Batten Family. I feel it's a very well run company and is good to its employees. My husband worked there in Circulation as a District Manager and a Zone Manager and did very well winning awards and bonuses for a lot of hard work. He had to retire in 1992 due to his disability because of multiple sclerosis. My wish is that the best will happen for the entire company, and that the right decisions will be made to help protect the employees who have worked so hard for the company. I would hate to see anyone lose their job. Best Wishes to all involved.
your loss
I was a reporter at the Pilot two years ago. I left largely because I thought the paper was too fluffy, not enough news, and I think that is still valid.
But those saying you'll be better off with new owners have no idea what will almost surely happen. I’ve worked at five papers, with five different owners, and have friends at a dozen more. Based on that, here's what to expect: The paper will be half its current size. Say goodbye to those big, pretty pictures, the long, graceful features, and almost any story over 500 words. Daily TV and stock listings, adios. Foreign news-- what's that? And fewer columnists of either political stripe.
Speaking of, if you think the Pilot's liberal, you have no clue. The Pilot is among the conservative dailies in the US. Only Murdoch's NewsCorp would make it more so -- and you won't like what else would come with it.
"Liberal Media" - rhetorical crutch to ignore the train wreck
bad news = ratings = newscoverage
bush admin = responsible for lot o' bad news
bad bush news = reported in papers / internets
bush apologists = "libwul media!"
Readership down for a reason
Once upon a time, I didn't realize how bad the Pilot was. Then I went off to school in a place where I could get the Washington Post delivered and discovered what a real newspaper looks like. The tripe the Pilot runs masquerading as news is appalling. The format is all over the place and resembles a bad high school newspaper. The problems with the Pilot are myriad but the paper's biggest problem is that the editorial board is so incredibly out of touch with the constituency it claims to serve. Tidewater is a relatively conservative area but the Pilot's editorials are so liberal that I'm amazed the Pilot's headquarters building doesn't require some sort of buttressing on its left side to prevents its falling over. Not only are they liberal in their views, but the writers feel a compelling need to editorialize in a particularly off-putting and condescending manner as if feeling a need to lecture
It's Amazing
It's simply amazing how the negative, argumentative people are usually the ones to comment on issues. They seem to need to voice their antagonistic impressions wherever there is a forum for them to do so...and, in most cases, what they have to say is invalid and/or poorly researched. The Virginian-Pilot has been around for over 100 years and during that time has been a beacon of information for the community. It's been well respected by most residents, who generally don't spend their valuable time posting on-line comments. I generally don't either, but had to make an exception in this case since I work for the paper and can set the record straight. This paper has won many awards over the years, both for its look and content. The reporting is balanced, well written and thoroughly researched. They treat their employees wonderfully and fairly and have always had a concerned, philanthropic b
Hmm economic downturn?
Maybe they predict an economic downturn (recession / depression), and want to sell off all of the holdings now. Then in a number of years, buy them all back (or others) for pennies on the dollar.
The Pilot
This paper has its good points and bad points.The Photographers that work for the paper are awesome.It is also Good to clean windows with-No Streaks! Seems like your little doll house is being torn down.Good Riddance!The paper has been so one sided that It should only need half the ink! I hope the first thing they do is clean house of all the boring, non researching writers.( especially in the opinion columns ).You now have the room to make this a good newspaper instead of birdcage bedding.
I start my day with the Pilot (Cont'd)
Final thought that overshot my word limit.
(As a final note, one of the articles mentioned the Raleigh paper being bought by McClatchy Papers. The day McClatchy buys the Pilot is the day that my paid subscription will stop!)
I start my day with the Pilot
I'm a daily VP subscriber and consider my day incomplete without holding that paper in my hand, in the quiet of the early morning, with the dog at my side. It's part of the daily routine that prepares me for the day. While I do peruse news throughout the day at work on various online sites, I consider that morning read a separate experience. I prefer being able to savor and read the words rather than scan the fast paced click-click-click world of online news, with so many sources that you feel rushed to read it all.
I have had issues with VP editorial with its tendency to lean left, but I appreciate the fact that its a locally owned paper by a company who does invest back into the community with leadership and charity. (One of these days, you should go visit the Jane Batten Student Center at Virginia Wesleyan College. It's fantastic!)
We don't know what the future will hold, but I hope jobs aren't lost an
Who will be the Watcher?
All you negative folks take note, who do you think will keep any sort of an eye, or at least some symbol of noticing, our local governments and politicians? Unfortunately, as good, solid, spoiled citizens, we sit back on our laurels and let someone else monitor everything around us so we can cry and gripe about it. We cry and gripe about it right up until it affects our own backyard. Then, we suddenly want the world to change to make our own backyard what we want it to be.
Wake up, Folks. You think you don't like what happens in your local government now, take reporters out and see what happens. Even in open door meetings, citizens do not participate or even show up.
I grew up reading this paper, 50+ years. My family had two newspapers delivered daily right up until THE LEDGER STAR was no longer published. This is an excellent publication, a cherished member of the community and if it went away or even ju
Don't worry Virginian-Pilot staff.
Maybe the Battens will donate $100 million or so to your unemployment fund.
Change of Command
Obviously, the management of the news seems to be undergoing a change of command locally. Whether it is simply an economics issue (few seem willing to buy a newspaper when the Internet and TV carry free and ready-access news) or a political issue (could be a mixture) is hard to verify. Over the years, a few major corporations have consolidated control of our news. Freedom of the press as a result is disappearing as news becomes manufactured for large corporate interests.
As news becomes more and more manipulated nationally, I have also seen the awareness of the public rapidly decline. How many notice that service deaths in Iraq are reported as the total American deaths in Iraq ignoring contractor deaths or how the millions of refugees from Iraq are ignored? Supposedly there is almost an equal or significant number to troop figures of American civilian contractors in Iraq who are also dyin
va pilot & ledger star
I am a "local", born here, schooled here, etc.
I have seen the paper go from a twice a day publication to once a day, and the elimination of the afternoon paper and the 'paperboys'.
All do to ownership and management, and economics of course.
I have also seen their advertising rates and rules change for the worse. It used to be, that if you wanted to do odd jobs, you could place a 3-line ad in the classified section for 7 days for $11.00+ and if you paid it off on time, the charge was reduced to 10.00.
That same ad today is considered a "commercial ad" and is charged at the rate of about $130.00 a week. Hardly a rate that anyone wanting odd jobs or providing services can afford.
I will be glad to see the ownership change, and with the change, I'm hoping the new owners will want to get back to being a friendly 'hometown paper' again.
It's the bottom line.
When the numerous full page adds started appearing in the Pilot I started wondering why. My little brain thought that in order to get the business the Pilot had to give them the big adds to get the business. I have been reading the newspaper for as long as I can remember, however, many people no longer read the printed paper. These days news comes at you in all directions, TV, internet, so who needs to pay for a newspaper. Who better to know this than those at the Pilot. When it's gone, and it will be, the replacement will not be nearly as well done as the Pilot.
IF YOU THINK THE V-P IS BAD...
...you must not have traveled much.
good article
good article....
Opportunist Bashers Go Away!
Note: The story was about Landmark being sold, not the Pilot and it's percieved content/bias by a few. The story here is about a local institution who many of our friends and relatives work for or retired from and a story about the future of print media. I did not see one comment in concern of the employees' future. How would you bashers react if USA Today or the New York Times bought Landmark or the Pilot alone and closed the local offices and printing plant and eliminated local coverage? It's not unthinkable to those who can think.
I believe the Pilot is one of the best and most respected local newspapers in the country, thanks to being privately and locally owned. Proof is in the recognition and awards the Paper, it's Reporters and Photographers recieve annually.
It is a sad day today to realize the end of an institution is near. Thousands of jobs might vanish or be outsourced.