D-G Buys CPI Newspapers

The Arkansas Democrat-Gazette will exercise its option to buy the Northwest Arkansas Times, the Benton County Daily Record and related assets of the Walton-owned Community Publishers Inc., including eight weekly newspapers, CPI announced on Aug. 19.

CPI President Steve Trolinger said the company was “disappointed” that the D-G had exercised the option. Neither CPI nor the D-G would disclose the purchase price.

The acquisition, expected to close Sept. 30, will end a five-year relationship between the D-G and the CPI dailies that was originally described as an “alliance.” The companies had entered into a 10-year agreement with a put/call option to buy after five years.

“We have enjoyed our association and partnership with Community Publishers Inc.,” said Jeff Jeffus, publisher of the Times and vice president of the D-G’s Northwest Arkansas edition. “Five years ago, both companies were losing money. Today, our combined operations are profitable. The alliance recently announced three consecutive profitable months and their first profitable quarter for the three months ending June 30.”

“The reason to acquire their interest is solely an economic one,” D-G Publisher Walter Hussman said of CPI. “Since we repaid all of our bank debt last year, we have been looking for more newspaper opportunities. We can’t think of any place we would rather invest than in Northwest Arkansas.”

The region’s other major newspaper chain is owned by Stephens Media Group of Little Rock. It owns the daily Morning News of Springdale, which will have about half of the newspaper circulation in Benton and Washington counties combined, with the other half going to the D-G, Times and Daily Record.

In addition to the two daily newspapers, the sale includes the Siloam Springs Herald Leader, the Gentry Courier Journal, the Gravette News Herald, the Decatur Herald, the Bella Vista Weekly Vista, the Rogers Hometown News, the Pea Ridge Times of Northeast Benton County and the Elkins White River Journal.

CPI said the sale does not include other CPI assets such as the Harrison Daily Times, a weekly newspaper in Jasper, eight weekly newspapers in Missouri, a commercial printing business in Harrison and Springfield, Mo., or its home office.