NEW YORK, NY–(Marketwired – Feb 07, 2017) – A Star newspaper reported Wednesday that its stock has received a $1 billion windfall from a sale of its newspaper business.
The New York Post reported that the sale is in addition to a $5.6 million purchase in January.
The paper has seen its market value plummet since the sale of The Star in October of last year, falling by as much as $200 million.
The sale of the newspaper, which was a joint venture of The Post and Star, is the second such sale in recent months.
The Star’s owner, the New York-based Tribune Company, also announced plans to sell The Star earlier this month.
The paper’s stock is up about 70% in 2017 from its December 2016 value, according to a company filing.
The Star is in the process of relocating to a new building and will be renamed The Star Times.
The newspaper has struggled financially since The Star sold its ownership in February 2016, posting a loss of nearly $3 million in 2016.
Star had previously said it was closing the paper and selling the newspaper business to Tribune in December.
The sale price is a fraction of the paper’s current market value, but it is likely to bring the paper closer to profitability.
It also will likely result in the paper getting some help from the federal government’s Troubled Asset Relief Program.
The TARP program is designed to help distressed newspaper companies.