$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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Comments

  • David

    I pretty much agree with you, but there’s no need to make up stupid stuff: the diehard “1%” who would miss the NYT would NOT subscribe to the New York Post out of nostalgia. That’s like saying if you run out of Laphroaig, Old Crow Whiskey will do. Pure nonsense.

  • David

    I pretty much agree with you, but there’s no need to make up stupid stuff: the diehard “1%” who would miss the NYT would NOT subscribe to the New York Post out of nostalgia. That’s like saying if you run out of Laphroaig, Old Crow Whiskey will do. Pure nonsense.

  • David

    I pretty much agree with you, but there’s no need to make up stupid stuff: the diehard “1%” who would miss the NYT would NOT subscribe to the New York Post out of nostalgia. That’s like saying if you run out of Laphroaig, Old Crow Whiskey will do. Pure nonsense.

  • http://www.arguewitheveryone.com/current-events/49636-ny-times-wins-5-pulitzers-5.html#post1154158 NY Times wins 5 Pulitzers - Page 5

    [...] $1.3 Billion in debt - $34 million in cash - bailout rumors | Tribble Ad Agency : The Advertising Ag… At a time when New York Times managers are forcing all employees to take a five percent pay cut, and demanding even larger sacrifices from the NYT-owned Boston Globe, top executives of the beleaguered newspaper received substantial bonus and fringe benefit payments over and above their salaries, according to a proxy statement released on March 11. These bonuses and benefits to top Times company executives have provoked growing resentment among Times staffers, and frank anger from Globe reporters who have been warned by Times executives that their paper will be folded if they do not come up with $20 million in pay cuts and layoffs. On Tuesday, the Times disclosed a $74 million first quarter loss, 221 times larger than the $335,000 loss in the first quarter of 2008. According to the New York Times proxy statement filed with the Securities and Exchange Commission, corporate president and CEO Janet L. Robinson received a total compensation package valued at $5.58 million in 2008, up well over a million from the $4.14 million she received in 2007, and the $4.4 million she received in 2006. Robinson’s $1 million base salary has remained the same for three years. In 2008, Robinson’s total compensation included, in addition to her base salary: $1.6 million in stock awards, $1.5 million in options, a $35,000 bonus, $562,500 from the non-equity incentive plan, $898,171 from the "Change in Pension Value and Non-qualified Deferred Compensation Earnings," and "other compensation" of $46,368. A number of NYT staffers contacted said that there was considerably more resentment voiced on the newsroom floor, and in newspaper guild meetings, about Robinson’s pay than about compensation awarded to Arthur Sulzberger Jr., the NYT board chairman and publisher. Staffers noted that even though Sulzberger received bonuses and other compensation more than doubling to $2.4 million his base salary of $1,087,000, his total compensation package has declined substantially over the past three years from $3.4 million in 2007 and $4.4 million in 2006. In addition to his 2008 base salary, Sulzberger’s total compensation included a bonus of $38,045, stock awards of $54,443, option awards of $29,832, a non-equity compensation plan distribution of $597,850, a change in pension plan valuation and non-qualified deferred compensation worth $559,826, and $48,878 in "other compensation," according to the proxy. One NY Times reporter described the empathy for Sulzberger and the antipathy toward Robinson as follows: "Arthur [and his family] own the paper, but no one expects him to be a businessman. Janet was hired to be the CEO, she should know [how to run the business]." __________________ To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts. [...]

  • http://www.adirondackbasecamp.com/ TourPro

    Your line about subscribing to the NY Post is just wicked. LOL.

  • http://www.adirondackbasecamp.com/ TourPro

    Your line about subscribing to the NY Post is just wicked. LOL.