Member of the reality-based community of progressive (not anonymous) Massachusetts blogs
In his post on the Sun’s parent company filing for bankruptcy protection, Dick asks “Affiliated Media asserted that all but one of its 54 newspapers are profitable. That sort of begs the question, if it’s such a profitable company, why is it in bankruptcy?” Perhaps it is bad planning and poor management.
Back on December 26, 2008, the editor of the paper sang the praises of his “visionary CEO,” Dean Singleton. I would link to the column but it is archived. If you want to spend $3 or use your library card (internet or at Pollard), you can read it.
After accusing bloggers of rooting for the demise of the paper, the editor wrote “The fact is newspapers do a great job covering themselves, and making full disclosure on declining profits and job losses often paints a skewed picture in the minds of the misinformed.”
No one is rooting now or ever has for the demise of that paper or any other newspaper. There are many of us who want a quality paper, that is why we are concerned about its future.
In that same December 26th column, the editor quotes Singleton: “The Sun has a special place in my heart. It has stayed rooted in the community when others have left and it has stayed committed to improving the region through so many positive initiatives.”
This is the same guy whose company filed for bankruptcy and he ends up not losing a penny but those who lend him money lose over $137 million. So now we will see how big of a place the Sun has in his heart when the next consolidation comes along.
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January 25th, 2010 at 8:34 am
Just because the individual subsidiaries are profitable, that does not mean the parent company is.
The parent put itself into incredible debt to buy a bunch of the subsidiaries just before the economy tanked.
By converting their debt to equity, the parent makes itself much more solvent with little impact on the subsidiaries.
The people who invested in the company lost. That’s the market, there’s always risk in any investment and thats how it should be. Take away risk and the system breaks (re: health ins).
Now by being part owners, those investors will have a different point of view, and maybe the future of these papers is looking better (especially with the Supreme Court ruling last week).
January 25th, 2010 at 10:06 am
Where does “(re: health ins)” come in? What are you intimating there?
January 25th, 2010 at 10:14 am
As more and more people are “forced” into the health care system the risk to investors in insurance companies is reduced considerably.. while the need for innovation and efficiency is also lost.
January 25th, 2010 at 10:42 am
I’m still not sure I get what your point is. How is it exactly that this phenomenon ‘breaks’ the market system?
January 25th, 2010 at 11:32 am
From poynter.org:
What might happen at the JOAs (Joint Operating Agreements) in which MediaNews is involved
Reflections of a Newsosaur
Alan Mutter writes that the MediaNews Group bankruptcy filing may give CEO Dean Singleton the argument he needs to persuade the Justice Department that his distressed business has to exit the various JOAs, so as to be able to scale back to a single paper in order to remain viable.
I am not able to load “Reflections of a Newsosaur” due to firewall blocking at work but here is the URL pointing to the rest of the story for anyone else:
http://newsosaur.blogspot.com/2010/01/next-for-medianews-rolling-up-ailing.html
January 25th, 2010 at 12:45 pm
I take exception that I have been rooting for the demise of the Lowell Sun! I have never done so!
I might have been rooting for the demise the career of a particular editor, but that is a different story…
Plus that’s all about *saving* the newspaper, not hoping it dies! I would love to be a subscriber of a better paper! Even the dead tree version! If only they would get better leadership.