Buyout firm Apollo Global Management LLC is in advanced talks to acquire most of the assets of Digital First Media, publisher of the (Guild-represented) Denver Post and San Jose Mercury News, for around $400 million, according to people familiar with the matter. The potential deal illustrates private equity's interest in the newspaper industry. Even though newspaper readership is declining, buyout firms say they believe they can squeeze out a profit through cost cuts and new digital offerings. Apollo has so far prevailed over rival Cerberus Capital Management LP in the auction for Digital First Media, the people said.