- My Exclusive Interview With Bob Iger
- Activision Blizzard's "Modern Warfare 2" Sales Break Records
- Disney's CFO-Theme Park Chairman Executive Swap
- What to Expect From Disney Earnings?
- Ahead of Earnings Disney Restructures Studio
- Murdoch Lashes Out At Google
- Why Google is Paying $750 Million for Ad Mob
- Modern Warfare 2's Record-Breaking Launch
- Food Network, HGTV Drive Scripps Networks' Upside Surprise
- Disney's 'Carol' Tests Widest 3-D Release Ever
More Videos
- My Exclusive Interview With Bob Iger
- Activision Blizzard's "Modern Warfare 2" Sales Break Records
- Disney's CFO-Theme Park Chairman Executive Swap
- What to Expect From Disney Earnings?
- Ahead of Earnings Disney Restructures Studio
- Murdoch Lashes Out At Google
- Why Google is Paying $750 Million for Ad Mob
- Modern Warfare 2's Record-Breaking Launch
- Food Network, HGTV Drive Scripps Networks' Upside Surprise
- Disney's 'Carol' Tests Widest 3-D Release Ever
RSS FEED
MOST SHARED
- U.S. May Wind Up Green With Envy
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- Taking a Page from Obama's Asia Agenda in Investing
- EADS Cautious on Full-Year Forecast after Earnings Dip
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- Sustainability Indices Sprouting Up
- The Cost of Thanksgiving Dinner 2009
- Thai Economy to Grow up to 3.5% in 2010: Prime Minister
- Warren Buffett to CNBC: 'I Haven't Bought American Express In Years'
- CNBC Video: Warren Buffett & Bill Gates - Keeping American Great
- U.S. Stocks Rally for the Second Straight Week
- Dollar is Not Plunging—So 'Calm Down': Market Strategist
- Strategists Say Markets Have More Upside — But How Much?
- Hirschhorn: Risk-Averse Traders
- Roginsky: A Funny Thing Happened on the Way to Financial Reform
- This Year's Biggest Thanksgiving Leftover: Cash
- TV Series Inks Unique Deal For Fight
- Cisco Ups Tandberg Bid, Claims Over 40% Backing
- Stronger Yuan Needed for Global Rebalancing: IMF Chief
- Washington Not Trying to Contain China: Obama
- Japan Third Quarter GDP Jumps; 2010 Growth May Slow
- Quiz: How Much Do You Know About Green?
- Citi Rejects Terra Firma's Latest Bid to Save EMI: Report
- JP Morgan to Bid Over $3 Billion for Cazenove Stake
- Buffett: I Haven't Bought AMEX Shares in Years
- Bristol-Myers to Spin Off Mead Johnson Stock
Media Money
Text Size 
It's a tough time for newspaper and magazine publishers.
This week, "The Sun," the six-year old daily newspaper, printed its final paper. The conservative-oriented paper searched for new financial backers for nearly a month, and finding no private equity interest, had to shut down.
Meanwhile Variety, the 103-year old Hollywood trade publication, can't find a buyer. Reed Elsevier Group [REL
Loading...
()
] put its Information Business division (including Variety) up for sale. Of 40 prospective buyers, not even 10 made it to advanced talks.
With the frozen credit markets, Reed managed to arrange $1.2 billion of financing for the buyer, even offering to finance up to $300 million with its own money. That would make for a sale of some $1.5 billion-plus for Reed, but so far, no buyers.
Meanwhile newspaper publishers are feeling the pinch—struggling with the fact that short-term financing markets are pretty frozen right now. Gannett [GCI
Loading...
()
] said it moved to tap its $9.3 billion in revolving credit facilities.
Tribune Company (now private under Sam Zell) and McClatchy [MNI
Loading...
()
] all have significant debt, which means in this environment, slipping ad revenue could spell default or bankruptcy. At the very least, publishers will face higher interest rates and more limitations. The Star Tribune, a Minneapolis newspaper, says it skipped a payment as it attempts to restructure $430 million in debt.
Bottom line: not only do newspapers face declining ad revenues as marketers look for a more quantifiable and reliable audience, but they also face tougher debt environments. A bad situation on two fronts.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes