Corporate Raiders (take over artists), are only interested in poorly managed companies that can be turned around. As for real estate values, most papers are located in the urban core of their blighted midtown sections. You can stamp "Historical Landmark" on a 19th century building, but if the staff can keep track of the murder rate by peering out the window, that precludes any premium the sale of your landmark might bring.
Also, McClatchy's 2.3 Billion dollar debt makes a takeover or going private literally impossible. The family can't raise it, the banks won't lend it, and the Raiders won't spend it. Why would anyone take on that kind of debt when they can simply wait until they can carve out the pieces they might want at auction?
There you have McClatchy's future in a nutshell.
Thursday, November 13, 2008
No White Knight on the horizon for McClatchy
The following comment was left by a reader explaining McClatchy's bleak prospects.