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Wednesday, August 15, 2007

The "Sale" of the Boston Herald

Is there a secret agreement?
by Joachim Martillo (ThorsProvoni@aol.com)

Jeff Jacoby of the Boston Globe correctly points out that Rupert Murdoch sold the Boston Herald over a decade ago to Pat Purcell. Greg O'Brien's article "Boston Herald's Pat Purcell: Catcher In The Rye Of Newspapering" details the relationship between the two men in the June 4, 2006 issue of CapeCodTodayhttp://www.capecodtoday.com/blogs/index.php/Codfish/2006/06/04/boston_herald_s_pat_purcell_catcher_in_t ).

Here is the critical information.

Murdoch saved the best for last. After reacquiring the Post in 1993, Murdoch—who had been forced to sell the paper because of federal regulations limiting cross media ownership—decided to put the Herald up for sale. Purcell was asked if he wanted to make an offer.

"I know you don't have the money, and I understand you don't want partners, but I would like you to have the paper," Murdoch told him, asking Purcell and his wife to fly to his Los Angeles headquarters to discuss a deal structure.

Purcell was stunned. "We just bought the Herald," he told his wife moments after his conversation with Murdoch.

"How are we going to pay for it?" she asked.

"I don't know," said the smart guy from Queens. "We're going out to LA to find out!"

What Purcell lacked in resources, he more than made up in moxie over the years, and Murdoch was some impressed. In particular, Murdoch was delighted with Purcell's bare-knuckle negotiations with the Post's tough unions to secure the necessary cuts for the repurchase. One high New York official, who was concerned the Post might close and who was instrumental in behind-the-scenes 11th hour talks, called Purcell's home after Purcell had pulled the plug on discussions. "This is Mario Cuomo, and I work for the state of New York," the voice on the other end of the phone said. "What can I do to help?"

It was now Murdoch's turn to help. While Purcell won't discuss the sale price of the Herald, he admits the transaction was earth shattering. The trip to LA had to be put off a few days because of the '94 earthquake that hit 6.6 on the Richter scale.
What is the secret? Is there some sort of arrangement that gives Murdoch continuing influence at the Boston Herald in violation of federal law?

Herald
reporter Jonathan Wells, who played such a critical role in scare-mongering and defamation against the Islamic Society of Boston (ISB) in what appears to be a violation of US Code Title 18 Section 241 Conspiracy Against Rights, moved with surprising ease from his newspaper job to a position at Fox TV News.

On August 8, 2007, Christofer Rowland and Steve Bailey reported on a recent connection between Purcell and Murdoch in a Boston Globe article entitled ( http://www.boston.com/business/articles/2007/08/08/herald_plant_sold_as_paper_takes_steps_to_streamline/
Last year, Purcell sold the Herald's daily and weekly suburban newspapers surrounding Boston to GateHouse Media Inc., a national chain, for $225 million. Earlier this year, Purcell confirmed he was in talks with Dow Jones & Co. to outsource the printing of the Herald to a Dow Jones press plant in Chicopee. That concept is still in play -- Dow Jones will soon be owned by Purcell's old boss at News Corp., Rupert Murdoch -- and would allow Purcell to eliminate up to 100 of the 650 jobs at the Herald site.

Purcell owns the Herald property independently from the newspaper. The deal to transform the site, which the Herald has occupied since 1958, into a major real estate development is another piece of the puzzle.
Had the ISB defamation suit against the David Project, the Boston Herald, Fox TV and several other defendants gone forward, the real nature of the relationship between Purcell and Murdoch might have become public.







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