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A federal court judge in Orlando ruled Friday that Cox Enterprises' ownership stake of Daytona Beach, Fla.-based News-Journal Corp. is worth $129.2 million.
Cox Newspapers, a unit of Cox Enterprises, sued News-Journal Corp. in 2004. The two companies have been owners of Daytona Beach's News-Journal newspaper, with News-Journal President and CEO Tippen Davidson and his family owning a 52.5 percent share and Cox owning 47.5 percent.
Cox's suit alleged financial mismanagement after the newspaper paid $13 million for naming rights to the News-Journal Center, a performing arts center. News-Journal Corp. sought to buy out Cox's share after the suit, prompting a valuation hearing.
News-Journal argued that Cox's share was worth $29 million, with Cox contending it was worth $145 million.
Judge John Antoon II's ruling Friday said Cox's share is worth $129.2 million and that the "record is replete with evidence of corporate waste and questionable conduct by [News-Journal officials]." He gave both parties 20 days to outline what would "constitute reasonable terms of purchase in this case."
Jay Smith, president of Cox Newspapers --- which owns the Journal-Constitution --- said the ruling vindicates Cox's charges of mismanagement.
Copyright 2006 The Atlanta Journal-Constitution
