The Cox Corporation and the Davidson family, co-owners of The Daytona Beach News Journal are now in court in Orlando fighting over what that newspaper is worth.
Cox owns 47.5 percent of the paper, the Davidsons control it. The two had a falling out last year when Cox charged that the Davidsons were spending large sums on cultural arts in Daytona Beach and hiding the expenses. The Davidsons exercised a contract option to buy Cox out.
The court battle is over what that buyout will cost and provides a revealing insight into local versus chain control of the newspaper.
The Davidsons say the Cox share is worth $29.41 million based on operating as a family-owned, independent newspaper with continuing support for cultural activities and a profit margin of about 14 percent.
Cox claims if it ran the paper, it could cut expenses, jack up profits to 28 percent, and that the stock then would be worth $145.35 million.
To say there is a difference in philosophy here is understatement. Too bad both sides don’t have to show how their way is better for the readers and the newspaper’s employees.
Read Jay Stapleton’s Daytona Beach News-Journal story here.