May 26 2006
Media Meltdown
News outlets have one thing of value: credibility. Lost that and all that is left is capitol assets for the bankrupcy court. The NY Times has decided it is better to crash and burn in a liberal flame out than be the outstanding news outelt it once was.
Moody’s has just announced a downgrade in the rating of New York Times Company debt, with Times’ senior unsecured long-term debt rating cut by two notches from â€A2†to “Baa1,†the third-lowest investment grade ranking. It also cut the commercial paper ratings to “Prime-2†from “Prime 1.â€
This amounts to a major rebuke of the management of Pinch Sulzberger. Borrowing more money (which will be necessary to complete the Taj Majhal headquartes building under construction) will cost more thanks to the downgrade. Although Moody’s indicates further downgrades are not in prospect for the next year or more, getting lowered two grades is a strang signal that things are not going well.
We have been warning shareholders that their business is being badly managed for almost two years now. In that time, shareholders have already lost a substantial portion of their investment, even as the stock market went up substantially.
What a mess. Towing the liberal line has cost the paper a lot the last few years.
Air America should have shown people that when it comes to pushing an agenda, money is no object. Expect Sorros and Heinz to bail the Times out. The paper is now a caricature of the political propaganda rag. It has about as much credibility as the old Soviet Pravda had and is suffering a similar fate.
I guess I am still bitter that Rupert Murdoch didn’t buy the Knight Ridder papers.
Sarcasm on
For Immediate Release
Rumors on WallStreet today that there was an imminent buyout attempt by an investor group to have the National Inquirer be purchase by the NYT have been quashed.
The National Inquirer released a press statement that they would not lower their journalistic standards due to the dilution that a NYT takeover would envoke.. The board of directors of the National Inquirer announced that they had invoked “poison pill” provision at their last shareholders meeting to prevent such an action.
Film at 11
Sarcasm off
Merlinos2,
Great press release! “Fake yet accurate”. Has anyone heard more on the ABC/Hastert potential suit? 1) I am infuriated at Hastert for implying that Congressional members are above the law. 2) I can forgive if he can successfully put a dent in the blatant media bias, false and/or misleading reporting by wiping out ABC’s capital assets!
Have a wonderful Holiday weekend everyone, and do take time to remember those that have sacrificed for our freedoms!
It is amazing to me that so many institutions have decided to burn everything they have just to get at Bush and this administration – their hatred has so blinded them that they couldn’t care less about the long-term consequences. CBS news, case in point – they are now a joke, their credibility will never recover, and I foresee a semi-face saving climbdown over the next few years until Viacom axes the CBS news division forever – once the proudest brand in news, dead and gone. LA Times is headed the same direction; and obviously so is the NYT. Do any of these people care? I gather that they are so caught up in their own personal agendas and ideology that no, they do not care.
And of course, the biggest institution that is destroying itself is the Democratic Party. The Rep’s won’t stay in power forever, and don’t deserve to – but more and more I am coming to believe that they will be in power until some 3rd alternative shows up to knock them down. It won’t be the Dem’s, I’m sure of that.