$1.3 Billion in debt - $34 million in cash - bailout rumors
April 22, 2009
The New York Times is running into an extreme problem, they have $1,300,000,000 in debt and only $34 million in cash. Already in congress there is discussion of a New York Times bailout, and there are rumors of bankruptcy… though the latter has not been verified.
Our problem with the bailout is that the reason the New York Times is in big financial trouble isn’t because of the recession, it’s because we get our news from something other than dead trees, wasted ink and a carbon footprint the size of Texas. That newspaper is run like a big traditional advertising agency, and is suffering from the same problems. They don’t get the internet, and never will.
The sooner congress understand this basic principle the better, the New York Times.. like all news papers.. are being replaced by technology. This is akin to bailing out the wagon makers because automobiles are becoming popular and “stealing revenue” from the wagon makers.
99% of the United States wouldn’t notice if the New York Times shut down, and the 1% that would notice would simply go to another news website… or if they are really old school will pay to have the New York Post delivered.
It’s really game over for the news paper, and it’s a clear sign of what to expect from traditional ad agencies… remember.. a large percentage of the news paper revenue was gained from ad agencies… you don’t think this is a clear sign of what is to come?
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http://www.arguewitheveryone.com/current-events/49636-ny-times-wins-5-pulitzers-5.html#post1154158 NY Times wins 5 Pulitzers - Page 5
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