Investors Make Bid On STMG

By Marcus Gilmer in News on Sep 9, 2009 2:00PM

A group of Chicago investors have submitted a $25 million bid to buy the Sun Times Media Group, the company that owns the Sun-Times and a host (58, actually) of smaller sister papers. The group is led by Mesirow Financial’s James C. Tyree and called STMG Holdings LLC. Said Tyree, “I’m a lifelong Chicagoan, and I believe the Sun-Times and all its properties can make a positive impact on the region well into the future.” Who else is involved in this group? That's not known, though speculation puts the group somewhere in the neighborhood of six to 10 people and is rumored to include Blackhawks owner Rocky Wirtz.

According to the Tribune's report on the deal, $5 million would be for company assets while the remaining $20 million would be for assuming liabilities. Sun-Times Media Chairman Jeremy Halbreich claims he will stay and is looking to stop the company's loss of money by the end of the year. The closing of a suburban printing press, the conversion of the suburban papers to tabloid format, and higher newstand prices are all part of an effort to raise more money. One thing the new owners wouldn't be assuming is the $600 million tax liability that remains from the rule of the now-jailed Conrad Black.

The Reader's Michael Miner also has a good run-down of the potential deal.