The  second  largest newspaper group in circulation in the United States, the  Digital First Media,  is seeking "strategic alternatives" including selling off its clusters of dailies and weeklies in Colorado that will be beneficial to its stockholders and group of  directors.

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Media analysts predict that should the sale materialize, it would result in the Denver Post and 13 smaller newspapers  in the state to operate under local ownership next year.

Alan Mutter, a former newspaper executive, said that Digital First Media could cluster  the Colorado papers and sell them as a group.

Mutter said that the clustering strategy would help in making it easier for Digital to sell its newspaper groups in Northern and Southern California, New Mexico, Texas and along the East Coast.

Digital First Media was created upon the merger of Denver-based Media News Group and the former Journal Register Co. At present, the company has 76 dailies and 160 weeklies spread across in 15 states.

Analysts pointed out that if the company sold their newspaper groups as one piece, it would be the largest newspaper sale in history.

Digital CEO John Paton said Friday that the company has hired an investment advisor to review possible alternatives. He said that the company could sell the newspapers as a whole or  sell them  in regional clusters.

Patton said the company has a wide range of opportunities to choose from and the directors are currently reviewing their options to maximize the value of their businesses for the stockholders.

The 69 million dollar question is: Who will step up to buy these newspaper groups amid the rapid decline of print advertising revenues that has seen the demise of many newspapers in several states?

Analysts said there have been numerous wealthy individuals in the past who have bought  flagship newspapers in several states including Alaska, Boston, Washington, Minneapolis and Anchorage.He said this was made possible under the "Black Beauty strategy."

Under this strategy, the operative words are to wait it out.

"You might end up with a nice owner who gives you a warm stall," he said. "There are good odds that there might be someone in Denver and San Jose who would have that feeling, " mutter pointed out.

Mutter said that the most likely candidate to purchase the Colorado group of newspapers is Philip Anschutz who has holdings in The Oklamohan in Oklahoma City and The Gazette in Colorado.

Mutter said Anschutz bought the Oklahoma City paper and he has no doubt that he would want to be the publisher of The Denver Post.

Tagscolorado, Newspapers, cluster