Cuts likely after Philly newspaper auction, but creditors pledge to keep Inquirer, Daily News

Budget cuts likely in wake of Philly news auction

PHILADELPHIA — Budget cuts appear likely at Philadelphia’s two major newspapers after creditors won them in a bankruptcy auction Thursday.

But some see glimmers of hope for The Philadelphia Inquirer and Philadelphia Daily News after the creditors paid a higher-than-expected $139 million for them.

They have tapped former Publisher Robert Hall to step in and run the company, which includes the Philly.com Web site.

Hall says cuts are likely. But he adds he has no plans to close either publication even though few U.S. cities still support two newspapers.

Creditors won the closed-door auction over a group of Philadelphia-area philanthropists who offered $129 million before calling it quits.