Tribune Company files Chapter 11

[RebbePete]

http://news.yahoo.com/s/nm/20081208/bs_nm/us_tribune_16

This is big. The Tribune owns several major newspapers and employs tens of thousands of people. The newspaper industry, in the last 30 years, has undergone consolidation into only a few major players, unlike the "good old days" when the local paper was owned by local businessmen. I wonder how many other major players are close behind?

[grapejelly]

Re: Tribune Company files Chapter 11

they own the Los Angeles Times among others...

I wonder how the papers can survive. Their overhead is very high, their variable costs ain't low either...and much of what they provide is much better done on the web, and cheaper, and easier to get. Young people don't get the newspaper.

[Nervous Drake]

Re: Tribune Company files Chapter 11

.

[Wild Style]

Re: Tribune Company files Chapter 11

^^

WoW, idiocracy is really happening right before our very eyes..

[BiscayneSunrise]

Re: Tribune Company files Chapter 11

^^

WoW, idiocracy is really happening right before our very eyes..

Yes, But Sam Zell was smart enough to sell his real estate holdings a couple of years ago.

anyway, he said in the clip he wanted to make enough money to be able to cover both "puppies and Iraq". In other words, hard journalism and fluff pieces.

Problem is with print, the costs are too high. Internet based news providers have no problem providing virtually infinite amounts of stories to cover every interest possible. it's because there is very little incremental costs in doing so. For a newspaper to deliver an internet like universe of stories would require an encyclopedia to be delivered to your door every day. The print business model is impossible.

Depressions require consumers and businesses to prioritize what is important and profitable and to stop doing what no longer serves them.
as a for instance, consumers are accelerating the move to disconnect their phone landlines and relying soley on cell phones. In the media business, print no longer serves so will be cast off.

[cmraynew]

Re: Tribune Company files Chapter 11

These are the giants of our country?

He lectures impatiently about journalistic arrogance. How about the arrogance of buying a company in a declining industry with a supertanker full of debt?

Arrogance proven in less than a year. Is that a record? I mean, honestly, he couldn't keep it running FOR ONE YEAR! Oops, I forgot, we live in the age of the first payment default.

[GRG55]

Re: Tribune Company files Chapter 11

Yes, But Sam Zell was smart enough to sell his real estate holdings a couple of years ago.

anyway, he said in the clip he wanted to make enough money to be able to cover both "puppies and Iraq". In other words, hard journalism and fluff pieces.

Problem is with print, the costs are too high. Internet based news providers have no problem providing virtually infinite amounts of stories to cover every interest possible. it's because there is very little incremental costs in doing so. For a newspaper to deliver an internet like universe of stories would require an encyclopedia to be delivered to your door every day. The print business model is impossible.

Depressions require consumers and businesses to prioritize what is important and profitable and to stop doing what no longer serves them.
as a for instance, consumers are accelerating the move to disconnect their phone landlines and relying soley on cell phones. In the media business, print no longer serves so will be cast off.

What is it about people that make a bundle and all of a sudden get liquid in a big way [as Sam Zell did on his brilliantly timed sale of Office Properties]? They all seem to want to rush out and buy a newspaper so they can be a media baron with an official mouthpiece, or a sports franchise so they can demand a new publicly-funded arena under threat of moving the team to Hoboken?

[BiscayneSunrise]

Re: Tribune Company files Chapter 11

What is it about people that make a bundle and all of a sudden get liquid in a big way [as Sam Zell did on his brilliantly timed sale of Office Properties]? They all seem to want to rush out and buy a newspaper so they can be a media baron with an official mouthpiece, or a sports franchise so they can demand a new publicly-funded arena under threat of moving the team to Hoboken?

Ego. Or perhaps, megalomania?

But seriously. To Zell's credit he told the questioner he wanted to make enough money to afford serious journalism. he doesn't seem to be trashing Tribune just to spin off assets for a quick sell. he seems to seriously want to position Tribune for the future.

During any restructuring or high change environment there is a lot of complaining from people who are fearful of the future because they really don't understand what is happening.

Zell is a visionary that is going to drag the dinosaurs into the future. No government bailouts to subsidize failure for him. I suspect that Tribune will be much better off in a few years time. I just wish Detroit were as courageous.

[RebbePete]

Re: Tribune Company files Chapter 11

they own the Los Angeles Times among others...

I wonder how the papers can survive. Their overhead is very high, their variable costs ain't low either...and much of what they provide is much better done on the web, and cheaper, and easier to get. Young people don't get the newspaper.

Here's more info from The Baltimore Sun, one of their newspapers:

http://www.baltimoresun.com/business...1.story?page=1

As far as fixed costs, here's an important point from page 2 of that article:

Union contracts could also be renegotiated or canceled altogether in such circumstances, and employee pension plans could be at risk, lawyers said.

I used to work as a manager in a newspaper. That particular one had five unions in the building. Some of the work rules were crippling. For example, with the modern, computer controlled presses, a pressroom could be run with under ten people (we proved it when the paper went on strike for a few days). Union mandated manning: around 150. No joke.

If newspapers can break free of some of these high-costs, they do have the massive capital equipment to print all sorts of high-volume publications. When I was at the paper, we investigated all sorts of things, but were held back because of some of the work rules. For example, if we put a press on-line for an hour to print a commercial job, we would have had to pay those 150 people for a full shift, possibly including overtime.

In addition, as the economy continues to deteriorate, how many people will be abandoning their internet and cable connections and going back to getting their news in print? I still doubt papers will reattain their high levels of circulation from 30 years ago, but they might be able to still survive.

[Rajiv]

Re: Tribune Company files Chapter 11

But seriously. To Zell's credit he told the questioner

He also said "F*** You" to the questioner at the end of that little vignette. I appears to me that he was drunk and slurring his words, and not in good control of himself!

[GRG55]

Re: Tribune Company files Chapter 11

...I used to work as a manager in a newspaper. That particular one had five unions in the building. Some of the work rules were crippling. For example, with the modern, computer controlled presses, a pressroom could be run with under ten people (we proved it when the paper went on strike for a few days). Union mandated manning: around 150. No joke.

If newspapers can break free of some of these high-costs, they do have the massive capital equipment to print all sorts of high-volume publications. When I was at the paper, we investigated all sorts of things, but were held back because of some of the work rules. For example, if we put a press on-line for an hour to print a commercial job, we would have had to pay those 150 people for a full shift, possibly including overtime...

Sounds like the newspaper publishers hired the same labour negotiators as the Big 3 auto companies...

[Jay]

Re: Tribune Company files Chapter 11

http://news.yahoo.com/s/nm/20081208/bs_nm/us_tribune_16

This is big. The Tribune owns several major newspapers and employs tens of thousands of people. The newspaper industry, in the last 30 years, has undergone consolidation into only a few major players, unlike the "good old days" when the local paper was owned by local businessmen. I wonder how many other major players are close behind?

Watching that video, I wonder if he has Tourette Syndrome. He has the motor tics and the F bomb in that situation fits the bill as a vocal tic.

[cmraynew]

Re: Tribune Company files Chapter 11

I used to work as a manager in a newspaper. That particular one had five unions in the building. Some of the work rules were crippling. For example, with the modern, computer controlled presses, a pressroom could be run with under ten people (we proved it when the paper went on strike for a few days). Union mandated manning: around 150. No joke.

Pardon my previous naivety. The more I think about it, the more I expect that the bankruptcy was Zell's plan all along. If the fixed costs are truly this high and non-negotiable, then bankruptcy may be the only way to make news profitable again.

Be the first in, and the first out, and then seize market share!

[D-Mack]

Re: Tribune Company files Chapter 11

Times Co. to borrow against building


everybody needs money

[BiscayneSunrise]

Re: Tribune Company files Chapter 11

He also said "F*** You" to the questioner at the end of that little vignette. I appears to me that he was drunk and slurring his words, and not in good control of himself!

I missed the profanity. He also got a round of applause from the audience when he said he wanted to be able to afford both "puppies and Iraq" which sounds to me totally rational. The thing about Zell is that he is a rough around the edges entrepreneur who can make money, a "Fat Tony" type. I rather have him at the helm than a smooth talking elitist.