McClatchy's market capitalization -- the overall value of its shares in the stock market – has fallen to just $60.27 million.
Ask yourself, how can a company valued at $60 million repay debt of $2 billion?
Answer: it can't. Restructuring debt terms won't do it, scrambling to increase web content won't do it. Some newspapers have turned to selling off assets, but buyers are holding out for the lower prices that will be available in bankruptcy. The question is not whether McClatchy will go bankrupt, the only question is when.
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16 comments:
Time for a Dave Barry reality check:
“Newspaper readership is declining like crazy. In fact, there's a good chance that nobody is reading my column.”
Nothing like gallows humor. Like the MSNBC anchor who signed off by saying good night to all his viewers. All 12 of you.
I don't understand the joy in the thought of thousands of people being unemployed.
12:28: No joy at the prospect of thousands of people losing their jobs. I've lost jobs before and it's not fun. But major job losses are a reality because the newspaper industry is transitioning. I'm sorry for all whose job is at risk.
It's not just McClatchy's stock. Lee Enterprises is also taking it on the chin. They have the same debt issues on their balance sheet.
McClatchy senior managers did not understand the responsibilities to keep thousands of people employed.
The evolution in information has been occurring for over two decades and Newspapers choose arrogance and greed
Employees and journalism stewardship did not factored in concerns of long term company health.
Many McClatchy folk , including some now departed senior managers, raised these concerns years ago. All that fell on greed deafened ears.
The bitter ‘joyfulness’ stands in contrast to the indifference of the butchers made rich in slaughtering the dying cash cow.
I don't understand the joy in the thought of thousands of people being unemployed.
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Never once have you ever heard anyone here even mention a joyful utterance about thousands of people being unemployed. But then you know that already, just as you know that the majority of people who have commented here are victims of McClatchy's management. So in closing, might I say, f*(k you, and f@#k your phony McClatchy carebear crap.
The biggest problem with this business is the high fixed costs, (people and printing) that are very high and the over leveraged businesses like MNI now can't cut people fast enough to cover their debt covenants.
The investments most companies made in acquiring newspapers would have been much better served developing local search platforms that people could sell. They've lost the local advantage they have once had and now have given that space to the Googles and IYP players. Too bad.
This stock is going down till a range of $0.25 of $0.50 per share
The Christian Science Monitor recently ceased publication of its daily print edition, and two major dailies in Detroit - the Detroit Free Press and Detroit News - have cut back print delivery to three days a week. The E.W. Scripps Co. ( SSP) has put its largest newspaper, The Rocky Mountain News, up for sale, and some local sources expect the operation to fold completely.
I'm dreaming of a PINK Christmas!
Pruitt is finished, IMHO.
I don't understand the joy in the thought of thousands of people being unemployed.
December 23, 2008 12:28 PM
The MSM has been doing all it can to badmouth the economy in order to "get" Bush. It never mattered to them who was collateral damage, it was "putting our kind" back in charge that mattered.
The MSM even savored the thought of a broken economy as a means to write the heartwrenching stories for their Pulitzers and becoming the next Steinbeck.
The elitists never thought that they'd actually have to drink from the well that they poisoned. Karma can be a real bitch.
3:20pm... nail meets head. So well put.
It is too bad the non news and editorial employees have to pay with their jobs for the arrogant assholes who destroyed a profession to push an agenda.
Anonymous said...
"I don't understand the joy in the thought of thousands of people being unemployed."
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Guessing another person’s emotions without facts is far-reaching. But, I wonder if this Anon thought the lame McClatchy cartoon of the shoe toss at President Bush was just pictorial joy?
Actually I wasn't joyous over that cartoon. I saw it and then I didn't give it a second thought.
And as to karma, wishing bad upon others is pretty much the worst you can do for karma.
It breaks down like this, I don't really like the conservative papers or channels but I believe there is a need for them. And while I think most of the journalist with MNI don't have a politcal agenda, so what if some do? You think writers at the Wash. Trib are objective? I like reading MSNBC and Foxnews and then forming my own opinion.
My concerns are that people are going to be out of a job, simple as that.
And to the person who said, "So in closing, might I say, f*(k you, and f@#k your phony McClatchy carebear crap," thanks. It's nice to see the Christmas spirit shining through.
No political agenda? You've clearly never walked into a McClatchy newsroom, or you're blinded by your agenda. You know within 5 minutes exactly what you better believe. The only place on earth worse than a McClatchy paper is the Houston Chronicle, where they used to look you in the eye and quiz you.
Having the newspaper industry go through bankruptcy will be the most healthy development possible for the news business.
Only by these liberal biased companies imploding can they be made to realize that their brand of "reporting" has no market.
Only when these monopolies are gone will there by the possibility of something better rising from the ashes.
Bring on the liquidation experts. It is time to "STOP THE PRESSES!!!"
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