The New York Times: Living in Denial

How long can The New York Times continue to exist as an ink-and-paper entity? Web czar Vivian Schiller tackles that question as part of the paper's "Talk to the Times" series -- but not very convincingly.

"First, newspapers are not going anywhere," writes Schller. "Advertising revenue may be in decline, but publishing newspapers is still a very profitable business and we intend to keep our presses running for a long time to come.

"Second, online advertising revenue is increasing at a double-digit clip, and with our brand and audience we're well positioned to capture our fair share."

Schiller's only half-right on both counts. Publishing newspapers is still a very profitable business -- but not for the Times, which has to borrow money to pay its crippling dividend. And online ad revenue is increasing at a double-digit clip -- but not at the Times, where they were up only 5.5 percent in July.

Disclosure: The Times recently published a freelance piece I wrote.

Comments

[The Realist:]

I have been short this stock for about a year now ($21) and am absolutely amazed that it is trading where it is. This company is trading well above all its industry peers. The only thing I can imagine is that people think that it is the top paper and will perform better.

In reality I think it has a better name brand only in image. It is the worst run of all the paper companies and its socialists leanings are losing whatever subscribers did not already turn away from print.

There has to be some value in this company but not much. How it stays afloat is a mystery.

2008 Sep 03 12:35 AM

[appledeadmoney:]

I imagine the stock price is being propped up by the boys at Harbinger Capital. The firm took a big stake in the mid teens. I could never figure out how you could lose money in newspapers and airlines, but somehow the people running these companies usually do... Go figure....

2008 Sep 03 12:59 AM

[old flyer:]

the Times once rightly considered Americas greatest paper lost it's soul when it lost it'objectivity and the news became a mean spirited and sometimes dishonest extension of the editorial page. Bad product= bad buisness.Sic transit---

2008 Sep 03 09:40 AM

[notsosmart:]

would it really be the end of the world if the times folded? i havent bothered to read it since it endorsed castro in the eisenhower years.i survived.i dont care one way or the other.

2008 Sep 03 02:16 PM