The recent announcement by the New York Times (NYT) that it would start to require subscriptions next year has drawn no shortage of attention and commentary. It has tried to put content behind a pay wall before (and failed), as have other newspapers.

Almost universally, newspapers have struggled with online subscriptions, with the Financial Times and Wall Street Journal, a News Corp (NWS) property, the only two that have really delivered results better than awful. Whether the New York Times can operate at that level is in doubt, particularly given the stunning realization about Long Island daily newspaper Newsday.

Continue reading Newsday Shows Future of Online Subscription Model

Newsday Shows Future of Online Subscription Model originally appeared on BloggingStocks on Wed, 27 Jan 2010 11:20:00 EST. Please see our terms for use of feeds.

Continue reading How can the New York Times be worth so little? Easily

How can the New York Times be worth so little? Easily originally appeared on BloggingStocks on Fri, 25 Jul 2008 17:59:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that a spokesperson for New Corporation (NYSE: NWS) said the company has dropped out of the bidding for Tribune Co's (NYSE: TXA) Newsday. This leaves Cablevision Systems Corporation (NYSE: CVC) as the apparent winner of the auction.
• According to people familiar with the matter, the Wall Street Journal reported that American International Group Inc's (NYSE: AIG) airplane-leasing unit is considering a split from the company. The people said International Lease Finance Corp have grown "increasingly concerned" the company will be hurt by AIG's financial troubles.
• Royal Dutch Shell Plc (NYSE: RDS.A) and Spain's Repsol YPF SA (NYSE: REP) are pulling out of one of Iran's biggest gas projects, the $10B-plus development of phase 13 of South Pars, the world's largest gas field, the Financial Times reported.

• Bloomberg reported that HSBC Holdings Plc (NYSE: HBC) set aside a smaller-than-forecast $3.2B for bad loans in the U.S. The bank also said its Q1 profit was higher than Q107.

Newspaper wrap-up: HSBC's allowance for bad U.S. loans is lower than expected originally appeared on BloggingStocks on Mon, 12 May 2008 08:00:00 EST. Please see our terms for use of feeds.

The Wall Street Journal, which is owned by News Corp. (NYSE: NWS) is reporting that News Corp. has withdrawn its bid for Newsday (subscription required). Rupert Murdoch's News Corp. was unwilling to match the $650 million bid offered by Cablevision (NYSE: CVC). New York Daily News owner Mort Zuckerman had also bid on Newsday.

Besides being higher, Cablevision's bid is likely to face fewer regulatory hurdles, considering Murdoch's and Zuckerman's New York holdings. But, according to the Journal, the bid could prompt some pushback from investors who question the the strategic rational for the deal. Cablevision could bundle Newsday subscriptions with other broadband and phone services it offers in the New York area.

Tribune Co. (NYSE: TXA), current owner of Newsday, recently reported that first-quarter revenue and circulation was down, as newspapers continue to struggle. Cablevision also reported a first-quarter loss of 11 cents per share.

News Corp. pulls bid for Newsday originally appeared on BloggingStocks on Sat, 10 May 2008 16:10:00 EST. Please see our terms for use of feeds.

Cablevision (NYSE: CVC) is considering buying Long Island newspaper Newsday. Jared Kushner, a rich young publisher who owns the small weekly The New York Observer may also be involved. As far any anyone knows, the Observer has never made any money.

According to Reuters, the bid would be above the $580 million already offered by New York Daily News owner Mort Zuckerman and Rupert Murdoch's News Corp (NYSE: NWS), which owns the New York Post.

Cablevision's board has already hurt its shareholders. The company's controlling shareholders, the Dolans, made a cash offer of $36.26 for the company in mid-2007. That was just before cable companies began to report weaker earnings due to increasing competition from phone operators like Verizon (NYSE:VZ). CVC now sells for $23,

There are no savings for Cablevision if it buys a newspaper. If it makes an offer in partnership with the Observer, the NY-based paper is so tiny that any cost cutting would be meaningless.

The reasons behind the Post and Daily News offers have some sense to them. By combining with another large daily paper which has overlapping geographic distribution, the chances of taking out tens of millions of dollars in costs per annum are excellent.

Putting a cable company with a daily newspaper does not make Cablevision shareholders a dime. With the newspaper industry faltering, it may actually cost them a great deal of money.

Douglas A. McIntyre is an editor at 247wallst.com and author of the Ten Stocks Under $10 letter.

Cablevision (CVC) and Newsday: a mistake from the beginning originally appeared on BloggingStocks on Thu, 01 May 2008 09:32:00 EST. Please see our terms for use of feeds.

Wall Street Journal special committee is a bunch of saps originally appeared on BloggingStocks on Wed, 30 Apr 2008 16:14:00 EST. Please see our terms for use of feeds.

Rupert Murdoch is facing off against the Federal Communications Commission (FCC) as he seeks to take control of two TV stations and three newspapers in New York -- including Newsday -- The New York Times reports. A December 2007 FCC rule allows a company to own just one paper and one television station in the same city in the top 20 markets so long as there are at least eight other independent sources of news and the station is not in the top four. (The stations that News Corp. (NYSE: NWS) controls are the fourth- and sixth-largest in the New York market).

Meanwhile, I am fascinated by the Wall Street Journal's [subscription required] coverage of the departure of its own managing editor, Marcus Brauchli, yesterday. The punch line was that everything is fine because Brauchli was simply doing what the boss wanted. Brauchli's new role? Providing "guidance to senior management in a wide range of areas," including whether Murdoch's Star-TV service in Asia should launch a business-news channel. Sounds like a good fit.

In contrast to the Journal's corporate press release on its page one, The New York Times reported that Brauchli was fired. It noted that a few weeks prior to his departure, Murdoch's henchmen indicated they were unhappy with the pace of change at the Journal. The Times wrote: "At some point, They told him, 'We don't think this is working,' and Brauchli replied that in that case, he should consider leaving."

Continue reading Is Murdoch more powerful than the FCC?

Is Murdoch more powerful than the FCC? originally appeared on BloggingStocks on Wed, 23 Apr 2008 11:25:00 EST. Please see our terms for use of feeds.

Will Rupert Murdoch expand his print media holdings? originally appeared on BloggingStocks on Fri, 21 Mar 2008 16:10:00 EST. Please see our terms for use of feeds.

Have billionaires Eli Broad, Ron Burkle and Sam Zell run out of ways to spend their money? Maybe this explains their bidding war for Tribune Co. (NYSE:TRB).

Last night, Broad and Burkle said they would pay $34 per share for the Chicago-based media company, $1 more per share than an offer Tribune was on the verge of accepting from Zell. Both deals would be financed through employee stock ownership programs, according to the Los Angeles Times.

Broad and Burkle will invest $500 million in Tribune, more than the $300 million Zell reportedly offered, the paper said.

Money, though, isn't going to solve Tribune's problems.

Big city metros such as The Los Angeles Times are particularly vulnerable to competition from the Internet and smaller local papers. Tribune's largest paper also has had turmoil in its management ranks that reportedly has hurt morale in the newsroom. The other big Tribune papers like Newsday, The Baltimore Sun and the Chicago Tribune have similar problems.

Zell said he plans to keep Tribune intact. I don't think Burkle and Broad have made a similar pledge. Regardless, the Chicago Cubs are probably going to get a new owner at some point in the not-too-distant future.

These wannabe press lords may regret having their wish come true.

A bidding war for Tribune? originally appeared on BloggingStocks on Fri, 30 Mar 2007 14:10:00 EST. Please see our terms for use of feeds.

With all of the hubbub surrounding Tribune Co. (NYSE:TRB), you would think that the company was some red-hot startup that throngs of companies were eager to buy. Of course, nothing could be further from the truth.

Sam Zell has emerged as an unlikely suitor for the Chicago-based media company. He's made his fortune in real estate and has no experience in the media though he reportedly told the Chicago Tribune that newspapers were just like any other business.

Zell, who earned the nickname grave dancer for his ability to spot undervalued companies, is right to a point. Media companies need to sell a product that people want at a price that they will buy. There is a big point that eludes Zell and the other guys who are interested in the newspaper business.

Good news organizations will anger their major customers -- advertisers -- from time to time. If Zell is successful, he will be besieged by people looking to influence the editorial direction of the Los Angeles Times, Chicago Tribune and Newsday. He has to ignore all of it.

Believe it or not advertisers -- the ones who aren't angry -- want to be seen in credible news outlets because it lends legimimacy to their brands. If a media outlet isn't credible, big advertisers avoid it. Check out one of the supermarket tabloids and you'll see what I'm talking about.

Continue reading Can Sam Zell save Tribune from itself?

Can Sam Zell save Tribune from itself? originally appeared on BloggingStocks on Mon, 26 Feb 2007 10:45:00 EST. Please see our terms for use of feeds.