WHAT'S NEXT: INNOVATIONS IN NEWSPAPERS

This is an interesting picture by Jin Lee for Bloomberg News:

Arthur O. Sulzberger, Jr. chairman and publisher of The New York Times Co., departs the company’s shareholders meeting at the New Amsterdam Theatre in New York, Tuesday, April 24, 2007 … using a back exit door.

Just in case.

New York Times Co. shareholders, led by Morgan Stanley, withheld 42 percent of their votes from directors to protest the Sulzberger family’s control over the company.

Five years ago, The New York Times stock was $51.88 (July 5, 2002).

This Friday, the same shares were traded at $18.87.

Not the best financial performance for a first-class newspaper.

The Sulzberger family has a problem.

They need money.

But Wall Street is not listening.

The stock is so cheap that almost any rival could buy all the available shares for next to nothing.

You don’t need to be a Google to buy all this stock.

The problem and the solution here is, again, the family.

This is another example of how these “insightful” Wall Street financial analysts see the newspaper industry and the “solutions.”

“Shares of The New York Times Company (NYT) are off as much as 2.5% today to a 52-week low on another analyst downgrade.

Merrill Lynch cut the shares to “sell” from “neutral.”

The firm also put a “sell” rating on McClatchy (MNI) and Lee Enterprises (LEE), two other newspaper stocks.

The research call is late, very late.

It has been evident for almost two years that falling print advertising was destorying the financial future of newspapers.

Most have onlne editions, but they often produce little more than a few percent of overall revenue at major chains

The question now is where the newspaper industry will turn.

It could begin to cut circulation in a bid to save paper and distribution costs.

It takes the risk that the readers will not move to the online version of the paper to get their news.

The other option is to begin to sharply cut the salaries of newspaper employees.

Most papers have unions, but the reality of the crisis is not lost on them.

Lower salaries would save some jobs.

For now.

Douglas A. McIntyre

Well, The New York Times Company stock is cheaper than ever today.

And it doesn’t matter how bad these analysts are, the reality is that the newspaper industry needs to react.

Not with another P.R. campaign but with more agressive changes and innovations.

We need:

Better newspapers.

Better journalists.

Better managers.

And The New York Times Company needs, for sure, better management.

As soon as possible.

The Bancroft family said today:

We will meet with Rupert Murdoch to discuss his $5 billion bid for Dow Jones.

We will consider other bidders and options for the company.

“After a detailed review of the business of Dow Jones and the evolving competitive environment in which it operates, the Family has reached consensus that the mission of Dow Jones may be better accomplished in combination or collaboration with another organization which may include News Corporation.”

Well, they want more money.

And they will get more money.

From Murdoch.

Or from The New York Times.

Be ready for the white knight.

And if you have shares of Dow Jones, keep them.

You will make more money than you expected.

At the end of the day, this is Wall Street.

This is business.

Not charity.

Money talks.

Journalists listen.

Following a special meeting of the Board of Directors of Dow Jones & Company held at the request of the Bancroft Family directors, the Family today issued this statement:

“As we have been since 1902, the Bancroft Family remains resolute in its commitment to preserve and protect the editorial independence and integrity of The Wall Street Journal, as well as the leadership, strength and vitality of The Journal and all of the other publications and services of Dow Jones.

“Since first receiving the News Corporation proposal, the Family has carefully considered and discussed among ourselves and with our advisors how best to achieve that overarching objective, while serving the best interests of the Company’s various constituencies.

“After a detailed review of the business of Dow Jones and the evolving competitive environment in which it operates, the Family has reached consensus that the mission of Dow Jones may be better accomplished in combination or collaboration with another organization, which may include News Corporation.

“Accordingly, the Family has advised the Company’s Board that it intends to meet with News Corporation to determine whether, in the context of the current or any modified News Corporation proposal, it will be possible to ensure the level of commitment to editorial independence, integrity and journalistic freedom that is the hallmark of Dow Jones.

“The Family also indicated its receptivity to other options that might achieve the same overarching objective.”