Posted on 05/07/2008 5:39:10 AM PDT by abb
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I just returned from a 10 day visit to my son’s family in Eden Prairie....
The Star Tribune is the “newspaper” delivered to their home....
Judging from the Leftist, Kumbaya and utterly naive refusal of the “newspaper”,their columnists or letter writers to the Editor to recognize this Nation’s long toothed enemies and risk -— this paper is LONG OVERDUE to be buried with a stake through its Leftist elitist heart..
It amazes me that Minnesota - in spite of the over abundance of Leftists - can produce so many fine citizens, business leaders and Military Service folks...
They must have all immigrated to Minnesota — Recently.
CEO/Chief Executive Officers - Political Campaign Contributions (1999 to Present)
Dean, Thompson New York, NY 10022
Avista Capital Partners/CEO
$5,000 07/18/2006 SOLUTIONS AMERICA PAC
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE/
SOURCE
http://209.85.173.104/search?q=cache:XiSkRASgMzQJ:www.campaignmoney.com/ceo.asp%3Fpg%3D221
Link is a huge resource.
There are alot of conservatives in Minnesota. You just have to get away from the tall buildings.
Why in the world would your son subscribe to the Red Star and Sickle? I cancelled way back during Clinton’s impeachment. Their coverage disgusted me and I vowed not one more dime to that filthy rag.
Here’s some stuff from back when the deal was made.
http://www.startribune.com/business/11222936.html
Dec. 26, 2006: Private group buys Star Tribune
http://www.nytimes.com/2007/05/14/business/media/14carr.html?ref=business
Many Cuts and Crises at a Paper
http://www.freerepublic.com/focus/f-news/1758683/posts
(Minneapolis) Star Tribune being sold
http://www.startribune.com/535/story/899047.html ^ | 12/26/06
Posted on Tuesday, December 26, 2006 4:13:09 PM by MplsSteve
The story talks about the purchace price of $530 million but also their $100 million investment. Very confusing.
High leverage works fine when things go good. Their $100 million investment can pay off handsomely.
Of course, the reverse is true when things don't work, as has happened here. They've written off 3/4 of their investment and are dangerously close to being under water.
The business will soon be valued for less than what is owed on it.
Compare this to buying a house in a rising market vs. buying one in a declining market. Same thing.
As for the $100 million of downtown property - or whatever it's value, the issue isn't what it is worth so much as who has claim to it when the music stops. I'll wager the banks that lent money on the purchase have that property as collateral, just as the loan company has the deed to your house until the mortgage is paid off.
Assume the thing shutters tomorrow. Avista's $100 million is gone forever. The banks are on the hook for the rest of the deal, so they seize the real property and sell it. They get $100 million for it and take a $300 million write down on the bad loan.
Lawsuits fly like a Minnesota blizzard. Another dinosaur disappears beneath the tar pits.
I'm having entirely too much fun...
More here:
http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003799873
Avista Wrote-Down 75% of Investment in ‘Star Trib’
By E&P Staff
Published: May 07, 2008 11:37 AM ET
NEW YORK Avista Capital Partners, the owner of the Star Tribune in Minneapolis, wrote down 75% of its $100 million investment because of the deterioration in circulation and advertising revenue at the paper.
Avista purchased the Star Tribune for $530 million from the McClatchy Co. in December 2006.
Avista took the write-down at the end of 2007. In a memo, Avista Partners wrote: “In the past year, the newspaper industry has suffered greater than expected declines in circulation and advertising revenue, particularly in print classified advertising. The outlook in the near to medium term remains uncertain.”
The Star Tribune’s Neal St. Anthony reports that Avista borrowed $340 million to finance the purchase of the paper. Avista said that the Star Tribune’s revenue dropped roughly $75 million between 2005 and 2007.
On Sunday, the New York Post reported that Avista had retained the services of the Blackstone Group to restructure its balance sheet.
Avista denied the Star Tribune is close to bankruptcy.
Several newspaper companies have been taking goodwill impairment charges over the past year, including McClatchy, which took a total write-down of $2.7 billion).
Goodwill is generally calculated by subtracting the worth of tangible assets of a business from the fair market value of the company. Goodwill consists of those intangible assets that would include a newspaper’s brand and perceived strength in the market, something that must be evaluated at least annually to see if it has lost value.
Thanks.
A few months ago, I thought I read that this group was big time rat donors. Maybe that was Chelsie’s hedge fund employer.
The ONLY reason the paper has lasted this long is the type face and layout has been better than the Pioneer Press, and folks like newspapers, at least so they have cheap paper for stuff to drip on, I get old stuff from folks and think thats what the “STAR” is good for. They have been trying to give the paper away for years, and most of us just say no.
Well, Rush could hire one of the AV seven to clean the EIB restrooms, that would save one job.
Probably all Dems-—this one could be the exception.
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