The Washington Post Company (NYSE: WPO) published data for the third quarter earlier today. Can't say I was mightily impressed by the numbers. Sure, there was a profit increase, but the top line wasn't exciting, and the newspaper division, as you might have expected, experienced a sharp decline in sales.

Net revenues rose 2%. Earnings per share came in at $1.81. That was sharply higher than the $1.08 per share recorded in the comparable period. Yet, I think you have to be careful in terms of reading too much positive spin into the growth rate.

Shares of the Washington Post Company (NYSE: WPO) are trading in the red this morning after the company reported that its fourth quarter profit dropped by a massive 77%. Net income came in at $2.01 per share, verse $8.71 per share in the same period last year.

As I noted in the earnings preview yesterday, the company's flagship newspaper and its magazine division (Newsweek Magazine) have been hit hard with losses in advertising revenue, and both had a dismal 2008 year. The company's newspaper division lost $14.4 million in the fourth quarter and had a $192.4 million operating loss for the entire 2008 year. Its newspaper division had a slight profit of $10.9 million in the fourth quarter, but on a full year basis it posted a loss of $16.1 million.

Tomorrow morning before the bell, The Washington Post Company (NYSE: WPO) will have its chance to impress Wall Street when it reports its fourth quarter numbers.

Going into tomorrow's announcement, analysts are expecting the company to show earnings on the quarter of $8.17 per share. Should the company hit this estimate, it would be a decline of 16.5% from its reported $9.79 during its fourth quarter 2007.

In describing the results of last night's Iowa caucuses, The Washington Post's David Broder minced no words: "Eight years after Iowa voters did the conventional -- sending George W. Bush and Al Gore on to meet in the election of 2000, they shook up the status quo in both parties as never before. The victories of Barack Obama and Mike Huckabee jolted the expectations of establishment candidates with far stronger conventional credentials."

The New York Times' David Brooks was similarly thunderstruck. "I've been through election nights that brought a political earthquake to the country. I've never been through an election night that brought two."

While I admit the results were exciting, there is something that people often forget that the Philadelphia Inquirer's Dick Polman argues they need to remember: "Incumbents aside, exactly one victorious Iowa candidate -- George W. Bush in 2000 -- has ever gone on to win the presidency in the same year. Even though (Jimmy) Carter got an historic boost in Iowa, on the way to his November election, he actually finished second in Iowa -- behind 'Uncommitted.'"

Oh, so all of the hot air that's been expounded in the past 24 hours over this antiquated political system is that one of the least representative states in the country may not actually mean much in the long term. That's unbelievable, but what's worse is that we are about to go through this whole exercise yet again in an equally non-representative state, New Hampshire.

It seems that every couple months there are new buyout rumors regarding the fast-growing social media site, Digg. And, yes, the rumors are buzzing again. The culprit this time is the Valleywag blog.

Of course, the suitors include old media stalwarts that – yet again – can't seem to shoot straight in the new media world. They would include such companies as the New York Times (NYSE: NYT) or the Washington Post (NYSE: WPO).

Oh, and the price tag for the deal is $300 million to $400 million. But, hey, in light of Microsoft (NASDAQ: MSFT)'s investment in Facebook, this seems cheap-o.

Ironically enough, Digg recently signed a $100 million ad deal with Mr. Softy. In other words, it seems like Microsoft may be to blame for the craziness in the social media world, huh? And, as a result, it may be making it very expensive for old media companies to buy into the space.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" column reported that Adobe Systems (NASDAQ: ADBE) founder and co-chairman John Warnock sold 25K shares for $1.1M last week, according to SEC data.
• The Wall Street Journal (subscription required) reported that Ben Bernanke, the Federal Reserve chairman, last night said that while the housing market will continue to be a "significant drag" on the U.S. economy next year, strong income growth has kept consumer spending steady.

OTHER PAPERS:

• Verizon Communications (NYSE: VZ) told Congressional investigators that it has provided customers' telephone records to federal authorities in emergency cases without court orders hundreds of times since 2005, reported the Washington Post.
• Ad agency WPP Group (NASDAQ: WPPGY) is in final negotiations to acquire Blast Radius, an Internet agency, reported the U.K. Times.
• Smith & Nephew (NYSE: SNN) is being investigated by the SEC on bribery allegations, according to the U.K. Times.
• Activist investor Knight Vinke is attacking HSBC (NYSE: HBC) once again, according to the U.K. Times.

WEBSITES:

• DigiTimes.com reported that Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has denied a report by the Ottawa Citizen which speculated that Taiwan Semi was seeking to acquire Canadian design house Emerging Memory Technologies, saying the rumors were false.
• TechCrunch.com reported that Napster (NASDAQ: NAPS) is switching from its desktop client to a fully web based client, enabling users to listen to their music from any computer after logging into the service.

MAJOR PAPERS:

• Singapore Airlines deal to buy 15.7% of China Eastern Airlines (NYSE: CEA), along with their parent Temasek Holding's 8.3% share, may be in jeopardy as Cathay Pacific Airways is said to also be interested in China Eastern, reported the Wall Street Journal.

OTHER PAPERS:

• As a part of its annual report to be released this week, BHP Billiton Limited (NYSE: BHP) is expected to announce that it has uncovered potentially the largest gold reserves in the world at its South Australian Olympic Dam mine, reported the Herald Sun.
• According to the Washington Post, citing congressional investigators, the FBI is investigating technology company Unisys Corporation (NYSE: UIS) after it allegedly failed to detect "cyber break-ins traced to a Chinese-language Web site and then tried to cover up its deficiencies."
• The Telegraph reported that British bank Barclays (NYSE: BCS) is reportedly preparing to sell FirstPlus, one of its subprime consumer loan units, at a loss. Barclays is expected to obtain a price lower than GBP4.5B, the book value of the unit's loan portfolio.
• Microsoft Corporation (NASDAQ: MSFT) will tomorrow release its 'Halo 3' video game and the company expects over $150M in sales in the first 24 hours of its release, and a profit margin that could reach 90%, reported the Los Angeles Times.
• Housing slump or not, Home Depot Inc (NYSE: HD) CEO Frank Blake says there will be no large jobs cuts or store closings, reported the Associated Press.

MAJOR PAPERS:

• Ratan Tata, chairman of the Tata Group of India, has confirmed his interest in the Jaguar and Land Rover units of Ford Motor Company (NYSE: F), according to the Wall Street Journal.

OTHER PAPERS:

• The Washington Post reported that Home Depot Inc (NYSE: HD) has made a deal to sell its supply arm, HD Supply, for $8.5B, down from the original price of $10.3B, to a consortium of private equity firms headed by Carlyle Group, inside sources say.
• According to a sources with knowledge of the discussions, Altria Group Inc (NYSE: MO) is considering spinning off its Philip Morris International division as part of a restructuring plan to increase shareholder value, reported the New York Times.
• A Chinese technology company has expressed interest in buying Seagate Technology (NYSE: STX), reported the New York Times.
• According to senior industry analysts, Dr. Reddy's Laboratories (NYSE: RDY) is eyeing U.S. based Bradley Pharmaceuticals Inc (NYSE: BDY), which is expected to be valued at between $380M-$400M, reported the Economic Times.

So the Immigration and Naturalization Service is raising fees to cover its costs. Why all the griping? Why are people complaining about the agency wanting to cover its increasing costs? When was the last time it raised prices?

• Washington Post Report: The Bush administration will announce an increase today in immigration application fees of more than 80%, federal officials said yesterday. The cost of applying for naturalization, for example, would rise from $330 to $595, and a required fingerprint check would go from $70 to $80.

Some people have complained that this should be funded by Congress......oh please, don't get me started. Funded with what, Congress has no money! I think it's great that a government office should be self-sufficient. The same people who argue that immigrants do not cost the taxpayer anything and are not a burden are the ones who also want someone else to pay.

MAJOR PAPERS:

• The Wall Street Journal reported that President Bush picked former advisor Robert Zoellick to take over the World Bank from Paul Wolfowitz; Mr. Zoellick, now a vice chairman at Goldman Sachs Group Inc (NYSE: GS), was a trade representative and deputy secretary of state.
• The Institutional Shareholder Service has advised shareholders of medical device maker Biomet Inc (NASDAQ: BMET) to turn down a $10.9B private equity deal for the company, according to the Wall Street Journal.
• The Financial Times reported that the IntercontinentalExchange Inc (NYSE: ICE) has signed an exclusive deal with the CBOT Holdings Inc (NYSE: BOT), a move that could advance ICE's unsolicited bid for the Chicago Board of Trade.
• Rather than focus on potential take-out targets, Barron's Online's "Weekday Trader" said that the smart bet for investors is to focus on companies with rising profits, cash flows and dividends, such as Loews Corp-Carolina Group (NYSE: CG) and Imperial Tobacco Group plc (NYSE: ITY), which boast free cash and dividends.

OTHER PAPERS:

• Best Buy Co Inc (NYSE: BBY) is in talks with Vivek for a "foray" into India, the Economic Times reported.
  
• The Washington Post reported that Nigeria filed criminal charges against Pfizer Inc (NYSE: PFE) over child deaths.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Inside Scoop" section reported that Thomas Everist, an MDU Resources Group (NYSE: MDU) board member since 1995, has sold a total of 742K shares for a total of $22.6M in MDU stock since May 2, according SEC data.
• The Wall Street Journal (subscription required) reported that EMI Group (OTC: EMIPY), the third largest music company by sales agreed to sell to Terra Firma Capital Partners for $4.74B, possibly ending its seven year battle with Warner Music Group Corp (NYSE: WMG).

OTHER PAPERS:

• According to the New York Post, citing people familiar with the situation, the weakening housing market and other issues are making it difficult for Home Depot Inc (NYSE: HD) to sell its professional supply business.
• Discovery Communications is in talks with CBS Corporation (NYSE: CBS) to sell half its Discovery Times channel and form a joint-venture partnership, according to sources close with the situation, reported the Washington Post.

WEBSITES:

• According to an NDP Group report, April sales of Nintendo's (OTC: NTDOY) Wii consoles were almost 3.5 times higher than Sony Corporation's (NYSE: SNE) PlayStation 3, reported DigiTimes.com.

MAJOR PAPERS:

• The Wall Street Journal (subscription required) reported that the UAW and representatives of Kirk Kerkorian, which made a $4.5B proposal for DaimlerChrysler AGs (NYSE: DCX) Chrysler unit, met to discuss the potential of an employee stock ownership plan and other alternatives to a takeover of the struggling automaker.
• A $25B deal to take SLM Corporation (NYSE: SLM), known as Sallie Mae, private will most likely remain under the scrutiny of a federal regulator, reported the Wall Street Journal.

OTHER PAPERS:

• The Washington Post reported that the FDA knew years in advance about contamination problems at a Georgia peanut butter plant and on California spinach farms that led to disease outbreaks, documents and interviews show.
• According to an examination by the San Jose Mercury News, a criminal case against Apple Inc (NASDAQ: AAPL) CEO Steve Jobs in the stock-options backdating investigation looks unlikely.
• According to Cinco Dias, Gottschalks Inc (NYSE: GOT) has hired UBS AG (NYSE: UBS) to explore options of a possible sale or a merger.

WEBSITES:

• Digitimes.com reported that Koninklijke Philips Electronics (NYSE: PHG) has decided to withdraw from the Taiwan handset market.

Welcome to Media World, my new weekly column, which will cover the highs and lows of today's media. I am, as they say, platform agnostic, meaning that I expect to offend both the mainstream and new media. I look forward to your feedback.

For my first column, I'd like to direct your attention to Citizen K Street, a 27-part series the Washington Post Co. (NYSE:WPO) is running on the Web site of its flagship paper about the rise of Washington lobbyist Gerald S.J. Cassidy. I'm sure the series, which was a herculean effort, will win all sorts of awards as these sorts of projects usually do.

But it's 27 parts. Who has the time to devote to reading a newspaper series that last that long about any topic? Is anything worth that degree of fuss?

One person who doesn't think so is Cassidy. In his blog, he seemed stunned by attention he's gotten from the Post. "There are so many other issues that face our country that are much more deserving of this attention." he writes.

Don't buy the false modesty.

Lobbying is plenty important, particularly in light of the Jack Abramoff scandal. It's also a huge business in Washington as Post Associate Editor Robert Kasier, who wrote the series, pointed out to me.

But I wonder whether Citizen K Street will only appeal to the most passionate of political junkies, the types of people who watch C-Span instead of "American Idol." Kaiser, who has been at the Post for 43 years, doesn't know either.

"I can't say I am sure we will have a huge audience," he said. "We are asking people to do something that they are not used to doing."

MAJOR PAPERS:

• In today's Wall Street Journal (subscription required):
• Top Banker Woody Young has left Lehman Brothers Holdings Inc (NYSE: LEH), according to people familiar with the matter.
• Google Inc (NASDAQ: GOOG) may have benefited from piracy, according to media companies.
• Tribune Company (NYSE: TRB) is leaning away from accepting offers from outside bidders and may restructure on its own.
• According to Saudi Arabian Oil Minister Ali Naimi, the world oil market is in "much, much better health and balance" now and, if trends hold, there will be no need for further production cuts or increases in supply when members of the Organization of Petroleum Exporting Countries meet next month.
• The Financial Times (subscription required) reported that MasterCard Inc (NYSE: MA) is expected to announce a pilot program with the GSM Association that will allow migrant workers to use cellphones for international money transfers.
• The Deutschland edition of the Financial Times reported that Private Equity is looking at Infineon Technologies ADS (NYSE: IFX).

OTHER PAPERS:

• According to the U.K. Times, Sanofi-Aventis ADS (NYSE: SNY) has called off talks with Bristol-Myers Squibb Company (NYSE: BMY) over a potential deal.
• The Washington Post reported that thousands of Army Humvees are lacking the Frag Kit 15 armor upgrade, which is not anticipated to be completed until this summer.
• Investor's Business Daily's "The New America" column highlighted Web conferencing leader WebEx Communications Inc (NASDAQ: WEBX).