The newspaper industry writes its own obituary.
The smartest guys in the room at the WSJ wrote a story on leveraged buyouts; specifically: “This week, investors who purchased loans backing Avista’s buyout of the Star Tribune newspaper learned that the company’s cash flow already is running as much as 20% below Avista’s original financial projections for the deal, which closed just three months ago…”
Some of the loans earlier this week dropped to around 96.5 cents on the dollar before rebounding to around 97.5 yesterday, according to data from the Standards and Poors LCD. Such levels indicate investors are worried about the newspaper’s ability to repay its debt.”
The print media can’t even cover the cost of newsprint and transportation, let alone a staff of a couple hundred leftist arrogant reporters and editors.
Make note that the WSJ wouldn’t have the honesty to investigate the finacial picture of their own media. At least not now, that the FOX empire is opening negotiations for a sale.
The same reporters should show the realistic profit picture of the WSJ; them may be able to keep their jobs.
Which will be the next major newspaper to shut down and to exist as a facade online? Better yet, when will all the newspapers be online and only a select few will continue with token print editions?
Citizen journalists will have more readership than the old media at that centerpoint, just years away, in my opinion.