Park Put in Play: Five Months after the Death of Its Founder, Park Communications Is Put Up for Sale

By Garneau, George | Editor & Publisher, April 9, 1994 | Go to article overview

Park Put in Play: Five Months after the Death of Its Founder, Park Communications Is Put Up for Sale


Garneau, George, Editor & Publisher


Five months after the death of its founder, Park Communications is put up for sale

FIVE MONTHS AFTER his death, Roy Park Sr.'s media empire is for sale. The executor of his, estate and the board of his namesake company have agreed to seek a buyer for Park Communications Inc., the Ithaca, N.Y.-based company he founded in 1962.

Park's widow, Dorothy, is executor of his estate. She succeeded him as chairman of the company after his death in October at age 83.

The company's board voted March 25 to put the company up for sale after the estate decided to sell its 89.6% stake. No investment banker had been chosen as of March 31.

Park, whose fortune was estimated by Forbes magazine at $550 million and rated the 175th-richest in the nation, willed 51% of his stock to a charitable foundation he established, the Park Foundation, and most of the rest to family members.

That means that 51% of the proceeds from selling his stock is earmarked for the foundation. The rest would go to family members, Ithaca College, North Carolina State University, church and the local United Way.

Because the Internal Revenue Code prevents a private foundation from owning more than 20% of a company, the foundation faced the prospect of having to sell its bequest sooner or later said Jerome Libin, a Washington lawyer who represents the estate.

"The estate and the foundation decided that it makes more sense to dispose of it now than at a later time," he said.

"This lets the foundation do its work and provides funds to the foundation."

Park's will, written in 1992, would have required the foundation to sell stock to employees, but a sale would preclude that.

Park Communications reported net income of $18.8 million on revenue of $172 million last year. It owns 30 small daily newspapers, 77 nondailies, and nine TV and 22 radio stations.

The company never paid dividends to shareholders because, as Park took pride in saying, he believed in pumping all profits back into the company, often for acquisitions.

Newspaper analyst John Morton of Lynch, Jones & Ryan in Washington expressed surprise at the decision to sell. "My understanding of Roy's intention was that this would not happen, that [the company] would go on as before," he said.

Park's widow and son, Roy Park Jr., through the company spokesman, declined to comment.

Morton valued the company at $400 million to $450 million. Only 10% of its 20 million shares are publicly traded, on NASDAQ. Its recent stock value, before the market declines last week, was about $470 million.

Analysts suggested that interest might be cool among the large groups that buy most newspapers because Park's papers are small and therefore have suffered more from economic hard times than larger papers. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Park Put in Play: Five Months after the Death of Its Founder, Park Communications Is Put Up for Sale
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.