Publishing

Reader’s Digest saga chronicles Debtville, USA

17 Aug 2009

When it went private in 2006, the publisher seemed to share the characteristics of its smalltown America readership: pleasantly hokey, stable, even boring. Like its readers, though, the company gullibly believed in the story of easy credit.

Reed Elsevier finds capital raising costly

30 Jul 2009

The publishing group is adding 10% to its share count through a cash box placing avoiding preemption rights. The new cash should preserve its credit rating. But this first big move from a new boss irritated already disgruntled shareholders. The shares plunged 15%.

BusinessWeek looks like a tough sell

13 Jul 2009

McGrawHill may be set to offload the venerable magazine in an effort to clean up its portfolio of businesses. But it s unlikely to bring in much cash. BusinessWeek is in decline on multiple fronts, and even giving it away more or less intact would be a decent result.

Newspapers learn from mobile phone operators

5 May 2009

With the launch of Amazon's new electronic reader, the New York Times and rivals are borrowing a trick from the mobile phone world: cheap hardware in return for signing longterm subscription contracts. The Grey Lady and others might even be able to give the gadget away.

Portfolio’s closure not just about gilded era’s end

27 Apr 2009

Yes, the magazine s April 2007 launch with a $100m budget and golden skyscrapers on the cover was badly timed. But if anyone had the ingredients to make it work, Conde Nast did. The financial crisis, though, accelerated the shift from printed word in ways hard to predict.

Personal view: Amazon’s Kindle is understated thriller

15 Apr 2009

The electronic book reader may not quite have the iPod s wow factor. But it does open up myriad options in a similar way. Aside from books, you can get newspapers on it in real time. It lets you carry around reference works. It can even read to you. Richard Beales is hooked.

Newspaper industry should look to cable for help

12 Feb 2009

Adopting an iTunes model for web content isn t the answer. Charging for subscriptions makes more sense, but only if all the major publications do so at once. Google or Yahoo should lead the charge in corralling them into a bouquet service akin to the cable model.

Wall Street trade magazines must adapt to malaise

3 Feb 2009

Financial lad mags and wealthporn titles like nowdefunct Trader Monthly are falling victim to the bust. But inventive publishers can still reach the nextgeneration masters of the universe. Tarp Lobbyist could be the next hot title.

New York Times’ Slim deal worth its fat price tag

20 Jan 2009

The media group is paying a 14% interest rate and giving warrants on a $250m loan from the Mexican magnate. It looks expensive, but it may be cheaper than going to a bank. The deal also has fewer tripwires than a typical loan. The catch: Slim is now senior to the Sulzbergers.

Tribune’s creditors leave margin for error

9 Dec 2008

The bankrupt newspaper company s bank debt is trading at only 35 cents on the dollar. That would imply Tribune is worth perhaps $3.6bn a far cry from the $12bn buyout price last year. As a going concern, its value might top $6bn. But creditors have reason to knock it down.

Tribune failure merits several headlines

8 Dec 2008

Not only is it the first megabuyout to unravel. The newspaper company's $12bn deal backed by Sam Zell went bellyup quickly too.The tricky structure means employees probably have more to lose than Zell. It highlights the excesses of the buyout boom.

Death of the newspaper not such a taboo

28 Oct 2008

The acclaimed Christian Science Monitor s giving up the daily ghost sounds like an industry death rattle. Changing media habits, consumer tastes and now the credit crunch have left many papers on the brink of insolvency. Some will disappear.

NY Times clan could face Bancroft-like pressure

23 Oct 2008

Members of chairman Arthur Sulzberger Jr. s family could be facing a big dividend cut. Similar pressure drove the Bancrofts to accept Rupert Murdoch s cash for Dow Jones. Even the closerknit Times clan might eventually have to think about relinquishing control.

Yell embarks on an orderly decline

22 Sep 2008

The yellow pages publisher has finally suspended its dividend. Critically, it s seeking looser terms on existing borrowings. This is all necessary but it s also an effective admission that Yell s longterm outlook is bleak.

Grim reaper stalks US newspapers

25 Aug 2008

Their revenues are plummeting. Tribune is selling assets to stay afloat. McClatchy is struggling. With top lines falling fast across the sector, publishers especially those of smaller papers that carry large amounts of debt look to be at serious risk.

Blackstone may have clever scheme for Informa

30 Jul 2008

Teaming up with Dubai World Trade Centre could help it clinch the biggest buyout since the crunch. Blackstone might have found a rich buyer for assets it doesn't want potentially stealing a march on rivals struggling to raise finance.

Yell has low margin for error

24 Jul 2008

The directories publisher met its first quarter earnings target. But the UK business underperformed. The company is expecting worse to come. Yell s clinging on to its dividend. With its debt covenants facing a squeeze and limited capital raising options, that might not last long.

Bad tech bets hurt, wrong debt assumptions kill

2 Jul 2008

Technology dealt yellow page publishers losing hands. Until recently, RH Donnelley, Yell and Seat Pagine Gialle assumed otherwise. Tech shifts are difficult to survive building lasting capital structures upon faulty assumptions is often fatal.

Cablevision’s newspaper deal may be a boondoggle

12 May 2008

The cable company is paying $650m for Long Islandbased newspaper Newsday. That s $70m more than Murdoch or Daily News owner Zuckerman bid and either could have reaped synergies in production and sales. Cablevision doesn t have such advantages. Its investors should worry.

Zell’s Newsday tax scheme could be a warm-up

30 Apr 2008

He may have found a way to sell the newspaper taxfree. It s not the first time he s sidestepped Uncle Sam Tribune itself doesn t pay taxes. It isn't clear if his Newsday approach will fly. But if it does, he could use it to offload other assets.