It sounds as if the company didn't so much want to keep the paper as no one offered the right price. From the memo:
I am pleased to announce that the Austin American-Statesman is no longer for sale and will remain part of Cox Enterprises. Since Cox announced its intent to sell the paper in August 2008, the Statesman received substantial interest from potential buyers. However, Cox did not feel that the offers reflected the true value of the Statesman.The memo goes on to list 19 papers it has sold and two others that remain on the market.