The falling value of newspapers
The New York Times Company wrote off more than $800 million of the value of its New England newspapers, primarily the struggling Boston Globe. The company bought the Globe for $1.1 billion and other papers for almost $300 million. So that seems to put the value in line with the value Jack Welch’s bankers put on the unit: between $500 and $600 million. I repeat: I don’t know why any company wouldn’t sell any newspaper to a willing buyer; it’s sucker money. And I don’t know why those willing buyers don’t start new news networks — note: networks more than products — without the encumbrances of physical plants and old business methods. There is a huge opportunity to enter one of these markets with fresh competition. And then watch the value of the old fall even more.
Tags: newspapers
February 1st, 2007 at 11:09 am
You’re right Jeff. Who wants to own those giant presses, buy tons of newsprint and drive it around in big trucks? What does that have to do with content anyway? It’s an old-fashioned means of content distribution and its being supplanted by newer, more efficient, more cost-effective methods.
The problem for the super-rich would-be press barons is that they have too much money. They need to buy hard assets. It takes a lot less than what they want to spend to build and launch a successful internet media business.
At SubHub we are working with individual journalists and small publishers who are making tens of thousands of dollars on their own websites. Federated Media is another example. How much did it cost to launch your blog? It’s the cost of a lunch at the Four Seasons for one of these potential newspaper acquirers.
Maybe they just need to look for some hard assets that aren’t in major decline.
Evan
February 1st, 2007 at 11:36 am
Perhaps the biz savants on the news side of the NYT should help the folks on the biz side. Or, did they?
February 2nd, 2007 at 11:54 am
the first thing they could do is stop charging for reading online….you cant even get a darn obit off the Worcester Telegram without paying. And complaining doesnt help, they ignore your emails.
The Boston Herald stopped charging to read columnists (Howie Carr) now I read them instead.