//
you're reading...
Uncategorized

The Sayonara Strategy: How Newspapers Will Fade Away

BlastofWinter

For newspapers, access to capital at anything approaching a reasonable rate is now impossible. Usually, given the circular logic that prevails in the world of investing, the presence of the smart money alone convinces others to jump in without looking too closely at what they’re buying. The opposite holds true, too. Once one bank turns down a deal, the others reflexively follow suit. Most institutional investors began to smell a rat four of five years ago and decided to keep their wallets in their pockets when newspapers came begging. That left only the hedge funds. Enter Alden Global Capital, run by Randy Smith, the man who practically invented vulture investing.

Once again a hard-nosed financial practitioner was buffaloed by a record of remarkable cash generation. Like Sam Zell with Tribune or Warren Buffett with the Washington Post, Smith failed to understand that the Internet had blown up the monopoly on which newspaper profit was…

View original post 1,208 more words

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: