A longtime critic of Delaware’s judicial system has expressed an interest in buying the News Journal/Delaware Online.
TransPerfect CEO Philip Shawe wrote a letter to Mike Reed, the CEO of News Journal owner Gannett. TransPerfect describes itself as the world’s largest language translation company and has moved into areas such as providing services for Netflix films.
“It is important to recognize that the assets of The News Journal newspaper and the News Journal Media Group’s related portfolio of print, digital, video, and new media are a natural fit for TransPerfect as the company moves into the media space,” Shawe wrote “Aside from TransPerfect’s American operations, the firm’s recent acquisition of ten independent media companies with operations in Europe, Middle East, Africa, Asia, and South America over the last four years demonstrates a strong commitment to this global move into media.”
Shawe did not list a price for the newspaper/website. The letter also included a disclaimer calling the proposal an “expression of interest,” and not a commitment to enter into a definitive agreement.
A message was sent to Gannett headquarters seeking comment.
The letter did not mention Shawe’s plans for the Delaware media outlet. One source said Shawe was committed to transparency in Delaware and would make sure that the media outlet has the resources needed to highlight the biggest stories in Delaware, “serving as a watchdog for local and state government.”
Like most newspapers, the News Journal has a fraction of the staff employed at its peak. It now has a union newsroom.
The letter is certain to raise eyebrows in legal and government circles since Shawe and TransPerfect have been engaged in a long-running dispute over the sale of the company. Shawe prevailed in the TransPerfect sale that ended up in Chancery Court after the 50-50 owners (Shawe and his former fiancee) could not agree on a buyout.
A partner in a Delaware law firm, who wished to remain anonymous, doubted the offer represented a serious effort to acquire the News Journal, given Shawe’s history of using various means to show his unhappiness with the Delaware government and the court system. The recent mail piece, shown above, featured a cartoon advertisement depicting Delaware Chancellor Kathleen McCormick as the Grinch.
Shawe has continued to wage a legal battle over fees related to the sale in both federal and state courts.
The Delaware attorney added that the News Journal is probably one of Gannett’s prime media properties and would not be on the selling block at a bargain basement price.
Last year, Reed said the company plans to pare down the roster of 200 newspaper/websites it owns, noting that 100 daily news properties generate most of its profits. Gannett is under pressure to cut a large debt load generated by the merger with Gatehouse. Gatehouse owned several former Dover Post Co. weekly papers in Delaware that were shut down and folded into the News Journal and the Daily Times in Salisbury, MD.
Despite the debt load, the company has generated decent cash flow, according to the Seeking Alpha site.
At about the time the Chancery-supervised sale was taking place, an organization known as Citizens for a Pro-Business Delaware was formed by TransPerfect employees, with the group later renamed Citizens for Judicial Fairness. That group has pressed for more diversity in the state’s judiciary, including Chancery Court.
The group was listed as the source of the above-mentioned cartoon ad featuring Chancellor McCormick.
The two organizations that have not released their funding sources spent millions of dollars over the years in advertising and public relations efforts that take to task the state’s judiciary and state government.
Citizens for Judicial Fairness issued the following statement on Shawe’s expression of interest in buying the News Journal.
“Delaware needs robust coverage when there is a lack of government transparency; the media should provide insight for the hard-working Delawareans that don’t have the luxury to monitor the action of the State’s elite leadership. We are encouraged that TransPerfect is considering purchasing the News Journal to begin to shine a light on the unscrupulous nature of Delaware State’s leadership and court system.”
