[Speed Gibson,
Wednesday December 27, 2006 at 1:34am]
More repercussions
Our decision to end our 35 year subscription to the Minneapolis Star Tribune continues to have significant effects. First, editor Anders Gyllenhaul bails to The Miami Herald. Now, the paper has been sold as expected, but at 50 cents on the dollar which seems to have surprised everyone.
Oh, there is spin about such a loss being necessary to offset other gains for tax returns. That's bunk, even at confiscatory Death Tax rates which don't apply here. The tax reductions soften the blow, but it is still a big loss of hundreds of millions of dollars to seller McClatchy.
I remember the late Louis Rukeyeser's maxim that the buyer of a stock thinks it's on the way up while the seller thinks it's on the way down. The latter is obvious enough here. But is the new owner, Avista, thinking the value will now increase, especially under their management?
Officially there are no changes yet, from Publisher on down. Yet. But look to see job cuts in 2007, much as with the St. Paul paper. Some changes, like dare I hope Sid Hartman's long overdue retirement, will not only save money, but improve the overall quality. So would, as James Lileks has proposed, eliminating the Opinion/Editorial department.
One thing Avista might be betting on is the demise of the St. Paul paper, which seems increasingly likely, finally giving the Strib the expansion to the east side of the metro. Or, perhaps they'll execute another shrewd buyout and merger.
The one thing that seems least likely is a commitment to improving the balance and quality of the paper. That would require an admission that these have been lacking of late, especially under Gyllenhaul. Don't hold the presses.
Oh, there is spin about such a loss being necessary to offset other gains for tax returns. That's bunk, even at confiscatory Death Tax rates which don't apply here. The tax reductions soften the blow, but it is still a big loss of hundreds of millions of dollars to seller McClatchy.
I remember the late Louis Rukeyeser's maxim that the buyer of a stock thinks it's on the way up while the seller thinks it's on the way down. The latter is obvious enough here. But is the new owner, Avista, thinking the value will now increase, especially under their management?
Officially there are no changes yet, from Publisher on down. Yet. But look to see job cuts in 2007, much as with the St. Paul paper. Some changes, like dare I hope Sid Hartman's long overdue retirement, will not only save money, but improve the overall quality. So would, as James Lileks has proposed, eliminating the Opinion/Editorial department.
One thing Avista might be betting on is the demise of the St. Paul paper, which seems increasingly likely, finally giving the Strib the expansion to the east side of the metro. Or, perhaps they'll execute another shrewd buyout and merger.
The one thing that seems least likely is a commitment to improving the balance and quality of the paper. That would require an admission that these have been lacking of late, especially under Gyllenhaul. Don't hold the presses.