Posted on 08/28/2006 1:30:20 PM PDT by Grampa Dave
http://biz.yahoo.com/fool/060828/115679589119.html?.v=1&printer=1
Motley Fool Dow Jones' Selling Points Monday August 28, 4:11 pm ET By Alyce Lomax
Although Dow Jones (NYSE: DJ - News) has a whole slew of well-known, national news brands within its product portfolio, it now plans to sell six of its community-based newspapers as part of its continued focus on online operations. The company is shopping around its Ottaway Community Newspapers, which are local papers for Danbury, Conn.; Oneonta, N.Y.; Plattsburg, N.Y.; Santa Cruz, Calif.; Sunbury, Penn.; and Traverse City, Mich.
Those markets may not sound like much to write home about, especially since Dow Jones is the name behind such well-known business and financial news brands as The Wall Street Journal, Barron's, and MarketWatch. But the WSJ itself mentioned the possible sale, noting that that the newspapers boast high margins and may command a roughly $300 million price tag (as well as a benefit for Dow Jones related to $155 million in capital loss tax carry-forwards that expire at the end of this year). However, it's worthwhile to note that ad sales were weak last month for the Ottaway newspapers.
While Dow Jones may merely be taking advantage of an opportunity to sell some assets and reap some extra cash, it's not too hard to imagine that it's hoping to sell those local newspapers while the selling's still good.
If it's choosing to pare down its portfolio, it would make sense to sell what it feels it can do without, though the move is not likely to quash the notion that print-based papers are yesterday's news. Although small, local newspapers have proven resilient, it's reasonable to wonder when the damage to newsprint will extend across the board.
The fact that Journal Register (NYSE: JRC - News) also revealed plans to sell some of its New England papers adds credence to the idea that these companies are looking to strategically position themselves for the times ahead, with an emphasis on digital efforts.
Not long ago, we learned that Dow Jones is contemplating such a strategy, particularly in the digital realm; that's what many newspapers have been doing. Despite industry difficulties, digital media represents a real growth opportunity for Dow Jones and rivals like New York Times (NYSE: NYT - News), Gannett (NYSE: GCI - News), and Washington Post (NYSE: WPO - News), to name just a few.
Dow Jones may have reported a decent quarter recently (many newspaper companies floundered amidst turbulent times), but it can't rest on its laurels. While the company may be one of the best-positioned newspaper companies for the long term, its stock is also trading at a premium compared to other companies in its industry. Watching its continued strategic changes should prove interesting to investors who are keeping a close eye on the industry.
Alyce Lomax does not own shares of any of the companies mentioned.
"While Dow Jones may merely be taking advantage of an opportunity to sell some assets and reap some extra cash, it's not too hard to imagine that it's hoping to sell those local newspapers while the selling's still good."
The beat goes on re selling of fishwraps of all sizes across the country.
This starting to remind me of the game "Monopoly"!
fyi
These are local papers that have much different readerships than national dailies. I doubt they have suffered the way the nationals have.
I think Dow Jones is just repositioning its assets.
Ain't gonna happen to my local FISHWRAP-The St.Pete Slimes here in Flooreeda...It's owned by a TAX EXEMPT FOUNDATION which doesn't care bout money particularly....They also operate a professional training school for LIBS called the POYNTER FOUNDATION---pushing out atheists and the like to write for the newspaper when they 'grow up.'
That may be the only for the Dinosaur Fishwraps to stay around to spread their lies. Get bought out by a lib non profit with deep pockets.
Down and down it goes, and where it stops nobody knows. Too bad.
Gonna need this.
Keep that card handy for the elites of the Dinosaur Fishwraps.
I wonder if Benny Laden get his Ny Slimes free or if he has to subscribe to get it?
I hope Pinch doesn't take his cash hoard and buy them.
Actually, it would be great if Pinch bought more dinosaur fishwraps around the country.
Then, his cash hoard will bleed out faster or burn out, term used during the Clintoon years.
Small fishwrap publishers remind me of a pint sized John Pierpont Morgan II standing on the NYSE floor in October 1929 trying to stave off an impending stock market crash by simply ignoring it and standing pat. Junior reckoned that littler people who saw him standing pat on the floor of the exchange would in turn stand pat.
My stack of stuff on small fry follows a bit of preaching.
Gn 22:17 your descendants shall take possession of the gates of their enemies
Anyone With A Modem Can Report On The World
. . .
[Hillary Clinton] said, "We're all going to have to rethink how we deal with the Internet. As exciting as these new developments are, there are a number of serious issues without any kind of editing function or gatekeeping function."
Newspaper sale$ decline should be blamed on the Journos
. . .
People who work at journalism full time ought to be able to do a better job of it than people for whom it is a hobby. But that's not going to happen as long as we "professional" journalists ignore stories we don't like and try to hide our mistakes. We think of ourselves as "gatekeepers." But there is not much future in being a gatekeeper when the walls are down.
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