Wall Street expects newspapers to maintain huge profit margins. But during this transition to a new reality, those margins must slide.
So investing in the online future means pissing off shareholders now.
Investing in the online future costs money. It will take an amazing talent to ignore Wall Street's demands for cuts and instead spend down profit margins.
An obvious solution for this problem is to go private. The heck with stock roller coasters.
Unfortunately, going private can come with some unsavory side effects, not all of which do I understand. Folks have told me that going private could mean giving power up to huge investors needed to buy back stock.
My guess is someone is going to try the private route anyway. No one wants to be the next Knight-Ridder.
Comments (1)
Good luck finding private investors who won't expect a profit. Most rich people are rich for a reason. And the class of rich guy with enough money to buy a major metro is likely to be very attracted to the idea of 20 percent profit margins. So how will things change?
Posted by Media Blog | December 18, 2006 10:05 PM
Posted on December 18, 2006 22:05