Wednesday, May 06, 2009

For the Baby Boomers in the Newspaper Business

Yeah, that about sums it up.

But then again, you didn't listen during the Dotcom Mania. And you didn't listen during the housing bubble.

What makes us think your heads will finally come out of your New York Time's asses and listen this time around?

So here's a little simple formula for all you newspapers out there to assess your current market value;

The value of a newspaper = salvageable book value of assets - market value of debt

So in other words, you're all insolvent.

3 comments:

Robert Miller said...

Newspapers are a waste of trees and ink. Good riddance.

The only paper not worthy of lining a bird cage is the Wall Street Journal. How are its financials?

CBMTTek said...

I am watching my local news paper (actually, the largest on in the state at this point) disintegrate right before my eyes.

Circulation is down, so the management decided to reduce content, and increase the per copy price. Whoops! Circulation actually dropped further after that move.

Revenue is down, so let's drop some reporters, and just repeat API and UPI news stories. Saves on that reporter salary cost. Oh, and let's also drop the expensive comics, and get all our funny pages content from the discount comics syndicate. Seriously, didn't Animal Crackers go out of print about 30 years ago?

Newspapers are not going out of business because of the internet. They are going out of business because of the stubborn management belief that they should not have to change what they are doing when the market conditions change.

Essentially it is the same thing that is killing American industry.

amcz said...

I read webcomics instead of print comics...