Staying on the sidelines of newspaper deals
The Quadrangle Group and co-founder Steven Rattner might be valuable advisers to the Sulzberger family when it comes to helping determine the future of The New York Times, but the private equity firm isn’t all that hot on buying papers.
Managing Principal Joshua Steiner , speaking at the Reuters Hedge Fund and Private Equity Summit on Wednesday, said that the valuations aren’t what they ought to be for papers, so they’re staying on the sidelines for now.
There’s a reason that they don’t exist in our portfolio. It’s not for lack of looking… . As I said, I don’t think they’re disappearing tomorrow, but when we look at the expected cash flows that they’re likely to produce over the holding period where we’re likely to own them, and you think about how they are valued at the time we’d be thinking about exiting them… Generally speaking, we can’t get to the prices that people are paying for them, and that’s why we haven’t bought them.
Listen here to what else Steiner said about newspapers: