Tim H.

Newspapers 'Rightsizing'? More Like Frightsizing

Ken I appreciate your articles on the newsprint industry. As you mentioned in an earlier piece about McClatchy's coverage of Guantamano. Good journalists from quality brands are needed online and in print. Of course the bloggers will disagree. But who is of more quality. A news reporter who checks his facts etc... Or someone of Dredge's ilk? It's not a good thing what's happening to the industry. Not blaming the internet. That is lost advertising and the newspaper companies slow reaction to it's affect. As far back as 1991 Warren Buffett warned newspapers about the challenges ahead. Their was a collective yawn.

One thing I will mention that you touched on regarding Tribune. Tribune is getting the headlines with it's massive cutting fueling the naysayers about industry. However in hindsight Zell's massive leveraged debt deal to buy Tribune should have been nixed. Tribune has a $4 Billion dollar debt/bond payment due at end of 09. This debt pressure is leading to the cuts at what were once quality papers. It's not good for Tribune, for employees, the industry or the public. Corruption in government is watched by the media.

While the industry as a whole is facing tremendous challenges. No other media companies of Tribune's size are facing the kind of debt issues Tribune is facing. Maybe McClatchy but McClatchy got itself in trouble buying KnightRidder. Reality is no more buying up newspapers but instead buying online/web companies.