Yesterday the Boston Herald announced that Digital First Media will acquire the newspaper for $11.9 million. Offering more than double the amount of two other bidders, Digital First Media beat out GateHouse Media who bid $4.5 million and Revolution Capital who bid $5.75 million at a 5-hour bankruptcy auction conducted by the bankruptcy law firm Brown Rudnick in Boston. The winning bid is subject to approval by the U.S. Bankruptcy Court in Delaware, said the Herald. A hearing is set for Friday. The sale is expected to close by March 28.

Operating under the name MediaNews Group, the Denver-based Digital First Media owns hundreds of publications across the country including the Denver Post, The San Bernardino Sun, The Valley Dispatch and The Cannabist as well as Adtaxi, an in-house digital agency specializing in digital marketing. The Digital First Media website says that the company’s newspapers reach more than 60 million readers each month.

GateHouse Media had originally agreed to buy the Herald in December. Filing Chapter 11 bankruptcy was a condition of the sale. At the time of that announcement, the Herald said it was struggling to fund pension and retirement liabilities and the company had experienced revenue declines in recent years.

According to the Herald, the newspaper and its union agreed to retain at least 175 of its current employees and to recognize their accrued paid time off and years of seniority when deciding benefits under the new organization. At this staffing level, the newspaper could cut as many as 65 positions.

The Herald reported that Digital First Media chief operations officer Guy Gilmore said, ‘The Herald is integral to the fabric of the great city of Boston.’

Founded in 1846, The Boston Herald is one of the oldest daily newspapers in the United States. In 1982, Rupert Murdoch bought the newspaper and, in 1984, named Patrick Purcell the publisher. Purcell bought the newspaper from Murdoch in 1994. Purcell was the unlucky man to deliver the blow to employees in December.

In a letter to employees, Purcell said, ‘I am very proud of the spectacular management team with whom I have worked hand in hand over the years. And I am equally as proud of the excellent staff in all areas of our company who have worked tirelessly to make the Boston Herald a relevant and respected provider of local and regional news for Boston and the area.’

‘Boston is a better city for the Herald’s unique and fearless local reporting. Because of all of you, we are well known for our influential political, community, business and sports coverage across the region and beyond,’ said Purcell.

In a statement yesterday, Purcell said he was pleased that the Herald yielded more than double the bid originally offered by GateHouse Media.

‘I started this process with a promise that I would do everything humanly possible to avoid shuttering the unique and fearless voice of the Boston Herald, whose roots go back 172 years,’ Purcell said.

‘I appreciate all of the time and effort that went into every aspect of this sale, from start to finish,’ Purcell added, ‘And am particularly grateful to GateHouse, Revolution and MediaNews Group for seeing the greatness in the people who put out the news every day at the Herald.’

Insider Take:

For a newspaper with 172 years of experience, a $12-million price tag hardly seems adequate. At the same time, Digital First Media was willing to pay more than double GateHouse Media’s original bid, which must offer Purcell some satisfaction. GateHouse Media would have gotten a steal at $5 million, but Digital First Media is still getting a deal. It will be interesting to see what direction the new owners will take the paper. Besides staff cuts, little is known about Digital First Media’s plans for the Herald.