In black and blue
The next newspaper company to face a coup is Tribune (for whom I worked on three newspapers). As has been reported quite openly, the Chandler and the McCormick clans are fighting over breaking up the remnants of their conjoined has-been empires. So sad. When Tribune announced its stock buyback, I said to myself (which is to say, I never got around to blogging it) that this was a clear indication of the lack of vision, innovation and balls; it was an effort to prop up the stock rather than invest in the future. Other newspaper stocks are suffering similarly, the Times shows in various charts today (not online, so far as I can see).
I was also amused to see Chandler argue that media cross-ownership wasn’t working. All those who fear and try to regulate media companies from growing through acquisition are only helping them put off the inevitable lesson that bigger isn’t safer. There is no synergy.
What’s needed in media is not sell-offs and buybacks and stock props and rollups. Piggy, piggy, come here, I have some pretty lipstick for you. No, what’s needed is vision and the bravery to build the future. I see a few — too few — individuals who have that but no companies that do. This is an industry in desperate search for balls.
Tags: newspapers
June 15th, 2006 at 8:28 am
Bravo Jeff! What we have here is clearly a leadership problem. I would however suggest you consider McClatchy and Lee as two examples of dead tree outfits wide awake and working to create a new future for their business.
June 15th, 2006 at 11:22 am
Gutting companies to boost short term returns is the pattern of this decade. Perhaps it has been less common in the media business. Just last week a hedge fund pressured Heinz into borrowing money so that it could buy back stock and thus (possibly) boost the price.
You can bet the hedge fund won’t be around when Heinz has to pay back the loans.
June 15th, 2006 at 11:45 am
stephen colbert has the balls. your probably infringing on his trademark and
he’ll find out and yell at you.
June 15th, 2006 at 1:05 pm
As noted, Stock buybacks are a trend, and jack up the stock price for awhile. It’s the ‘mission’ of the board to show gains in whatever way they can, and it may make the co. more attractive for a potential buyer.
June 15th, 2006 at 2:10 pm
Here’s the link to our Innovation & Design site where you can find the new magazine, IN-Inside Innovation.
Bruce
June 15th, 2006 at 2:11 pm
Whoa, here’s the link. http://www.businessweek.com/innovate/. Sorry about that. That gets you to the Innovation & Design site plus the new magazine–IN–Inside Innovation.
Bruce
June 15th, 2006 at 5:11 pm
Too many news companies think they can produce a bad product and STILL have people want it. They slash budgets and the product suffers.
Before the internet people might have put up with it, but with so many choices, why do they continue to assume that people will pay for watered down crap?
June 15th, 2006 at 6:30 pm
Bakerblog, Day 1
Chris Baker’s blog begins. If we look at it using the Jarvis Mantras: Local Frequent updates Passion Voice Some form of experience or expertise News is a two-way conversation I get the feeling that we’ll see most if not all…
June 15th, 2006 at 7:58 pm
I think you’re way off base about large media companies and synergy. I may not be a fan of larger and larger media conglomerates, but a company that knows how to properly use thier business units make synergy work for them. It takes balls and vision, something Tribune hasn’t had for a long time. I’m no fan of News Corp, but they are a shining example of how a large media company uses synergy to strengthen their and bottom line. The real problem with these media companies is that they are run by a bunch brainless fat cats who haven’t been able to move past the old business school adage that maximixing shareholder wealth is the only barometer of success.
June 16th, 2006 at 1:24 pm
Now I’ve heard it all. Just how many law suites does Microsoft aka Bill Gates have to loose for deceptive business practice’s, monopolistic business practices and unlawful competitive activity before you recognize that Bill Gates was a really good business person who did didn’t play by the rules of American Capitalism, not uncontrolled unregulated wild west capitalism. Maybe by the rules he’s just an average guy.