Working Capital Loan From Maine Values, LLC Will Fund Broadly Supported Growth Plans
Portland, Maine – MaineToday Media (MTM) announced it had reached terms for a working capital loan and five percent equity stake with Maine Values, LLC owned by Maine resident Donald Sussman to fund broadly supported growth plans at the state’s largest media company.
“The Board of Directors has been looking for an investment partner who shares our commitment to MaineToday Media and is willing to invest in a modern, broadly supported growth strategy,” said MTM Board Chairman Peter Brodsky. “We have found our partner in Donald Sussman and Maine Values, LLC. and we are confident our employees, readers and business partners will be pleased.”
“I believe a community’s newspaper says a lot about the importance it places on education, democracy, and working together to get things done,” said Sussman. “I am investing in and loaning working capital to MaineToday Media because I believe the communities it serves deserve healthy, financially stable daily newspapers that can help foster these values we all share. I want people to know that their local paper, the professional news they depend on and the jobs that come with it are here to stay. Employees and management have worked hard on an impressive growth plan. I am glad to be able to provide resources to fund that plan.”
The MaineToday Media Board of Directors, which Sussman will join as a five percent equity holder, was clear that one of the first steps under a now well financed growth plan would be to hire a top notch CEO with media experience. In addition, the Board said it did not expect any changes in employee ranks and that newsroom staff would remain in place and continue to exercise independent editorial decision-making.
“We have tremendous faith in the editors and newsroom staff who have been hired by previous owners. They are dedicated journalists who have and will always do their jobs professionally and independently,” Brodsky said.
The Portland Press Herald staff writer and Portland Newspaper Guild President Tom Bell said his union members are supportive of the new partnership with Maine Values, LLC.
“Our members are partial owners of MaineToday Media through our employee stock ownership program,” said Bell. “We have worked hard in partnership with management and the Board of Directors to help shape a plan to modernize our technology and strengthen this business. We are encouraged that Maine Values, LLC supports that plan and is providing the resources to fund it.”
The MaineToday Media board also expressed gratitude to the 2100 Trust. “We thank the 2100 Trust for their serious interest in MaineToday Media,” said Brodsky. “They are clearly committed to this industry.”
MaineToday Media owns and operates The Portland Press Herald, the Maine Sunday Telegram, the Kennebec Journal, the Morning Sentinel, and The Coastal Journal, as well as digital properties such as MaineToday Digital, MaineToday.com, MaineJobs.com and RaisingMaine.com.
The binding term sheet represents the intent of MaineToday Media and Maine Values, LLC to close a transaction as quickly as possible.