Philly Papers Sold At Auction

Philadelphia Inquirer co-owners Lewis Katz and H.F. "Gerry" Lenfest won a private auction for the newspaper and its parent company Tuesday, ending a fractious battle for control that prompted the business' sixth ownership change in eight years.

Their $88 million bid bested a group led by co-owner George E. Norcross III and was $27 million more than the partners spent two years ago to form Interstate General Media Holdings L.L.C.

Held at a Philadelphia law firm and closed to the media, the auction capped months of litigation between IGM's owners and turmoil for the company, which employs about 1,800 people at The Inquirer, Philadelphia Daily News, three websites, and a printing plant in Conshohocken.

It also comes as the news industry continues to battle declining revenue, decreased circulation, changes in reader habits, and struggles to profit from digital operations.

"We know more than anybody how difficult this business is," Katz told employees Tuesday afternoon at the company's Market Street headquarters. "We're going to give it our best. We're going to try to bring in the best. And, hopefully, we'll have a wonderful result."

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