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|| SportsShooter.com: Member Message Board
Knight Ridder being pressured to sell
Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 6:17 PM on 11.14.05 |
->> Rainer
This is actually a continuation of something that started a week or so ago. There may not be anything that comes of this simply because the price that they will want will probably be more than the market will be willing to pay.
That's the good news. The bad news is that the market may decide that KR is worth more sold off in pieces.
Michael |
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Rainier Ehrhardt, Student/Intern, Photographer
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Birmingham | AL | USA | Posted: 11:35 PM on 11.14.05 |
->> Robert,
Thanks for the link to slate.com. A new site to me that seems to have incredibly informative stories.
All this talk of downsizing, layoffs, jobs cut, etc. is making me nervous about getting into such a business. It seems everywhere I look, vacant photo positions are not being filled, but eliminated, leaving a photo dept. one short but with the same or more work load as when they had the extra body.
Although it may be too early to tell, I believe (hope) that print media will be able to somewhat gracefully adapt to online and emerging media. The one thing I don't get and that I believe is not aiding in this transition is newspapers' willingness to keep their online versions free. What's worse is that some papers put the exact content on their site as what's in their print edition. All this does is incite people to drop their subscription and get their news from the web everyday. Is online advertising strong enough to keep online editions of papers alive without charging for the content? That's to be debated I guess.
I think an easy fix to this situation would be to have different content online and charge a small monthly fee for access. Many newspapers do this already, are their any staffers from these papers with first-hand experience here? I'd be interesting to hear how they deal with the extra work and demands put on a newsroom and/or photo staff. |
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Andrew McGovern, Photographer
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Tokyo | Japan | Japan | Posted: 5:45 AM on 11.15.05 |
->> That editorial from Slate.com posted above is pretty grim. Knight Ridder are still very much in the black (as has been posted on this message board before), can still count on making steady -- if "eroding" -- profit in the next few years, but nobody seems to want much to do with them.
("After all, who on earth would want to buy a big newspaper company?")
I hope there's a way to reverse or transform it. |
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john taggart, Photographer, Photo Editor
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Philadelphia | PA | USA | Posted: 9:09 AM on 11.15.05 |
| ->> sad |
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Rob Ostermaier, Photographer
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Newport News | VA | USA | Posted: 9:31 AM on 11.15.05 |
->> I find this paragraph from the Yahoo News article to be very telling.
"Newspaper stocks have fallen out of favor with investors because of concerns about waning advertising and circulation as more people go online for news. Rising costs for newsprint and the consolidation of big newspaper advertisers like department stores have also affected the newspaper business. However, they remain generally profitable."
After letting everyone know whats wrong with the newspaper business the bottom line is that "they reamin generally profitable." I guess it's not enough profit and it's better to sacrafice service to the reader for the exta 2 or 3 percent dividend to the investor.
Anyone know a good privately owned paper to work for? |
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Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 11:07 AM on 11.15.05 |
->> Rob
Interestly enough I flew with a guy next to me last week from Canada that sells newsprint. We got into a discussion about the business and I asked him about price increases on newsprint.He said they had increased prices twice this year and would probably have 1 more.
"How can newsprint prices be rising when demand is falling?" I asked. His response was this "because they are closing paper mills in Canada faster than demand is falling." This keeps the price high despite a declining market.
Personally, your last sentence - asking about privately owned newspapers - is the one that hits the nail on the head. I don't believe newspapers and, for that matter, the news media in general are a particularly good fit for publically traded financial markets. Don't misunderstand what I'm saying, every business needs to make a profit - but the stock market's relentless focus on the short term makes is a very bad fit for the business of newspapers. There may come a time when newspapers are spun off back into private firms. Then they can worry about how to attract more readers - and I believe strong, compelling images are a big part of the solution. |
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Melissa Lyttle, Photographer
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Tampa | FL | USA | Posted: 2:40 AM on 11.16.05 |
->> Rob,
The objective line on my resume has always been pretty simple: I'd like to work for a daily newspaper that places the interest of the community it serves above the bottom line.
The first paper I worked for, the South Florida Sun-Sentinel, was owned by the Tribune Company. That objective line on my resume was the single most questioned (and laughed at) thing during my round of interviews when applying for that job. I was called "too idealistic" and assured that no place like that existed in the real world.
I recently got hired at the St. Petersburg Times, and that objective line was again one of the most commented on things during my interviews. But this time it was applauded and smiled at and I knew I wanted to work here because I felt like they got it. And it wasn't just lipservice. They really do. Our CEO recently wrote a column called "Who owns the Times and why it matters" on the editorial page, reaffirming why it is I'm here:
http://tinyurl.com/bzxry
The thing is, I love that the Times hasn't sacrificed quality for a quick buck. Working here certainly has a different feel than the big newspaper chain I used to work for -- less bureaucracy, for starters. But also, the end product is different because the goals are different and that's reflected in everything from management style to the look and feel of the paper. And in this case, different is good.
-m |
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D. Ross Cameron, Photographer
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Oakland | CA | USA | Posted: 5:11 AM on 11.16.05 |
->> Thankfully, our ever-growing, service-based economy will provide plenty of work for everyone! And more of it, too. And if you enjoy working for the minimum wage, why, this will be your dream job! Can you say, "May I interest you in a tasty beverage?" See? You're well on your way to a successful new career!
Don't worry, be lobotomized,
DRC |
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Rob Ostermaier, Photographer
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Newport News | VA | USA | Posted: 10:14 AM on 11.17.05 |
->> It's no secret today that Tribune has announced layoffs. We lost a total of 8 employess at my paper and 18 unfilled positions were elminated.
I worry about the future of journalism and photojournalism in particular. Standards for photos have been lowered so far that reporters are shooting their own stories. How long is it going to take for some beancounter to figure out that it's cheaper to hire freelancers at $50.00 an assignment as opposed to paying benefits and a salary for a staff position. Sure the photos are terrible but hey the shareholder gets a bigger return.
I'm not sure what the answer is. Does anyone know what the answer is? |
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Larry Vaughn, Photographer
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Gainesville | FL | | Posted: 4:21 PM on 11.17.05 |
| ->> The St. Pete Times has always been a cut above in the area of quality vs profits. It's a good thing that are staying that way. It must be quite a nice place to work. |
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Robert Hanashiro, Photographer
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Los Angeles | CA | | Posted: 3:05 PM on 11.18.05 |
->> "More Than 1,900 Newspaper Jobs Lost in 2005"
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_conten...
"Eighteen out of the top 20 papers reported weekday circulation losses ... including sharp drops at the San Francisco Chronicle (-16.58%) and the Boston Globe (-8.25%)."
http://www.editorandpublisher.com/eandp/search/article_display.jsp?schema=&...
"The newspaper business is getting smaller. On Wednesday, five newspapers owned by Tribune Co. announced job cuts, but they're hardly alone. In recent weeks, no fewer than nine other well-known newspapers all announced cuts in payrolls or other expenses. What's happening? Here are some questions and answers about the challenges facing the U.S. newspaper business."
http://biz.yahoo.com/ap/051117/newspapers_job_cuts_q_a.html?.v=4
"Memphis Paper Moves to Cut Staff by 170
MEMPHIS, Tenn. - The Commercial Appeal, Memphis' major daily newspaper, reported Friday that it hopes to cut its staff by 170 employees by mid-January. The newspaper, which is owned by the E.W. Scripps Co., has 774 employees.Workers age 50 and older and who have been with the newspaper at least 15 years will be offered financial incentives for early retirement."
http://news.yahoo.com/s/ap/20051118/ap_on_bi_ge/commercial_appeal_jobs_1
Recent Job Cuts at Major Newspapers
http://biz.yahoo.com/ap/051117/newspapers_job_cuts_box.html?.v=2
Times to Cut 8% of Editorial Jobs
The Los Angeles Times said Wednesday that it planned to eliminate about 85 newsroom jobs and an undetermined number of positions elsewhere at the newspaper to reduce costs in the face of sluggish circulation and advertising sales.
http://www.latimes.com/business/la-fi-times17nov17,1,4653009.story?coll=la-...
Times editor Dean Baquet tells his staff: "Other Tribune newspapers are making similar reductions in response to rising newsprint costs and concerns over a continuing decline in revenue. Still, this is our second straight year of staff reductions, and this is a painful announcement to make. It is one I've worked hard to avoid.
http://www.laobserved.com/archive/2005/11/lat_publisher_job_reducti.html#mo... |
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William Jurasz, Photographer, Assistant
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Cedar Park | TX | USA | Posted: 3:42 PM on 11.18.05 |
->> Rob writes: "After letting everyone know whats wrong with the newspaper business the bottom line is that "they reamin generally profitable." I guess it's not enough profit and it's better to sacrafice service to the reader for the exta 2 or 3 percent dividend to the investor."
Markets are forward looking. The fact that newspapers are profitable today is not as relevant as the fact that the future prognosis is bleak, and that is what makes investors find different places to invest their money.
A suggestion I heard that maybe newspapers shouldn't be publicly held companies might be a good insight. |
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Jerry Laizure, Photographer, Assistant
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Norman | OK | USA | Posted: 4:25 PM on 11.18.05 |
->> From a NYTimes Business column:
The investor is a hitherto successful money manager named Bruce S. Sherman, whose Private Capital Management invests money for wealthy individuals and institutions.
Starting in 2000, he saw value in newspaper stocks, and at last report his clients owned $4.2 billion worth of shares in nine newspaper companies. That is about one-tenth of the total stock issued by those companies and 14 percent of the $31 billion Mr. Sherman manages.
He is the largest owner of seven of those companies, with 15 percent of The New York Times Company, publisher of this newspaper; 26 percent of Belo, publisher of The Dallas Morning News and The Providence Journal; and 38 percent of McClatchy, whose papers include The Sacramento Bee and The Star Tribune of Minneapolis.
Families control those companies through supervoting stock. But Knight Ridder, where Mr. Sherman's stake is 19 percent, has no such stock. After he warned that he might support a bid to replace directors, Knight Ridder's board agreed to put the company up for sale.
Link to column (registration may be required):
http://select.nytimes.com/2005/11/18/business/18norris.html?8hpib |
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Rob Ostermaier, Photographer
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Newport News | VA | USA | Posted: 9:59 AM on 11.19.05 |
->> William,
I can't speak for the rest of Tribune Company but I do know that in spite of all the dire predictions in past years the paper I work at has consistently made financial goals. I guess 20% profit is not enough.
I guess what I would like instead of short term talk of pleasing the shareholder I want to hear what were going to do to improve the paper industry in the long term. By cutting staff, pages and coverage you give people less reason to buy the paper and the demise of the industry becomes a self fulfilling prophecy. I want to know what we're going to do to get the industry moving again and draw readers back in? What are we going to do to make the paper better? No body seems willing to address that beyond making more cuts.
Will there be another round of layoffs next year? |
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Michael Fischer, Photographer
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Spencer | Ia | USA | Posted: 12:56 PM on 11.19.05 |
->> In the short term, there's going to be nothing but pressure. However, there is precedent for what I'm about to suggest. As I mentioned in a earlier post, and as William Jurasz mentioned, some types of businesses don't do well under public ownership.
What could happen is this: As the value of newspapers falls, eventually they could get sold at a loss (relative to what was last paid for them). At that point, when they are heavily discounted because they no longer produce the kinds of returns the marketplace demands, they can be purchased at a significant discount. At that point, it is possible that some newspapers could be purchased at a low enough price to be purchased privately. So the current bid up actually is a good thing in a twisted way. It's also possible newspapers that aren't properly funded will die a slow death.
I do believe both will happen.The answer in the long term could be: Either the model of the St Pete Times or employee ownership. Employee ownership has a mixed bag of success - it still has to be run like a business - but there are some companies that do succeed with that model.
And to the point that underfunding newspapers and cutting back staff and resources kills newspapers- it's the typical beancounter approach. No one has ever grown out of a deficit position in the longhaul by just cutting people. Unless there is a positive marketing approach that makes people want to buy, you literally cut til there's nothing left TO cut. |
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