Art and the Deal

Sometimes timing is all that’s required for speculation to build around aroutine occurrence. That’s the case with the recent announcement that Arthur Howe, publisher of City Paperparent company Montgomery Newspapers, is resigning to pursue "a new opportunity."

Howe’s unexpected departure comes just weeks after Stern Publishing, owner of The Village Voice and sixother alternative weekly newspapers, went on the market. Howe is a self-proclaimed true believer in the alternativeformat. Last year, after a deal he orchestrated to buy Alternative Media Inc. (AMI), a three-paper alternative chain,fell apart, Howe strongly hinted he’d be back when the right deal came along.

The question is, is this the one?

Howe isn’t saying much, on or off the record. "I believe very much in the future of alternative newspapers,and I think this is where print publishing is headed in urban centers in the future," he said in an interviewMonday.

Do his plans for the near future include alternative newspapers? "Yep," he said without hesitation.

Does it involve Stern Publishing? "I can’t comment on that."

Since the announcement of the Stern group’s sale in September, it’s been widely estimated that the chaincould fetch as much as $200 million. In addition to the Voice, the chain includes LA Weekly, SeattleWeekly, Cleveland Free Times, Long Island Voice, Minneapolis/St. Paul City Pages and OC(Orange County, CA)Weekly. Recent speculation has archrival New Times Inc., owner of 11 alternatives, and RussSmith, editor and CEO of Village Voice competitor New York Press, at the head of the pack, but SternPublishing owner Leonard Stern is believed to be loath to sell to either. Last week, the Voice reported anintriguing rumor involving both: Smith and wealthy brother/financier Randy buy the chain, keep the Voice and sellthe rest to New Times. Neither party commented.

Other potential buyers not yet ruled out include Times Mirror, which acquired a chain of alternatives in New Englandin April, and The New York Times Company. (Though named in early speculation, Philadelphia Inquirer andDaily News owner Knight Ridder reportedly won’t enter the fray. A spokesperson did not return CityPaper’s call before press time.)

Whatever the scenario, Howe would be swimming with mighty big fish — and last year he was unable to close thedeal for AMI, which went for around $20 million. Howe won’t say with whom he’s partnering to pursue his"new opportunity."

Replacing him as publisher of Montgomery Newspapers will be Elizabeth Hunt Wilson, formerly vice president andgeneral manager. The change is not expected to affect City Paper, which has been independently operated sinceMontgomery acquired it in 1996.

—Frank Lewis