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Cox Plans To Sell Valpak, Newspapers

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The Associated Press

Published: August 14, 2008

NEW YORK - Cox Enterprises plans to sell its Austin, Texas, newspaper and several other smaller papers, reducing the company's portfolio of advertising-supported media properties.

The company said it also will sell its Valpak direct coupon-mailing business, which recently built one of Florida's largest factories, a $220 million facility in St. Petersburg. It produces 45 million coupon envelopes monthly and employs 500 at the factory.

It did not say how much it expects to fetch for the properties.

Cox, a privately held company based in Atlanta, said Wednesday that it will use proceeds from the sales to pay down debt.

The company intends to sell the Austin American-Statesman and five other community papers in Texas, including the Waco Tribune-Herald; three papers in North Carolina, including the Rocky Mount Telegram; and two in Colorado.

After the sales, Cox Newspapers will still operate The Atlanta Journal-Constitution, the nation's 20th-largest paper by circulation; The Palm Beach Post in Florida; and the Dayton Daily News in Ohio.

"This decision was made as part of an ongoing strategic review of our portfolio and enables us to maintain our strong and stable financial performance by further paying down debt," Cox chief executive Jim Kennedy said in a statement.

Cox said it generates about 80 percent of its $15 billion in annual revenue from sources outside advertising-supported media businesses such as newspapers, television and radio.

Those businesses have seen sharp declines in advertising revenue in recent years as advertisers shift spending online, where consumers are increasingly getting their information.

Cox also owns a cable TV company called Cox Communications, an auto auction and services company called Manheim Inc., and Cox Auto Trader, which runs auto publications and has a majority stake in AutoTrader.com.

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