McClatchy layoffs?

The two Modesto Bee sports writers who left in the last purge have started their own web site. A lot of football right now, of course, which means they'll be butting heads with Black Hat Football, but looks like they'll be offering basketball coverage as well.

Front Row Sports

 

Looks like a nice site. Will it be free?

One thing I wonder is what product would attract more subscribers in a market like Fresno, assuming identical pricing.

1. A nice local site that covers the hell out of the local market, which I would guess is what Front Row Sports is trying to do.

2. Or a national site like the Athletic, assuming a Fresno State beat writer was hired.

 

As Wall Street sours on McClatchy, a longtime lender is now also buying up its stock

 

What does that article conclude? It seems to me it painted an optimistic portrait of that chain's future. Any experts care to summarize for those of us who are do not speak suit-talk?

 

Interesting. I have a couple long-time friends working at McClatchy papers. They are younger and not as likely to be laid off compared to the overpaid veterans on the staff. I'm always curious to know how the company's doing.

 

I will offer an opinion despite not being an expert.

What I conclude is that the McClatchy family, which has controlled the company for over 150 years still makes the decisions because of their voting control of the stock. Unless they decide to sell or the company goes into Chapter 11 they will remain in charge. I don't think the company is on the brink of Chapter 11. I think they will hold on for a while longer before they go broke.

I do not expect the company to be sold before it goes into bankruptcy. While the total value of the common stock is currently is about 70 million buyers do not want to assume the debt load.

 

This is until the older members die, and the children, who probably don't care about newspapers, sell the company to some private equity firm so they can become Silicon Valley venture capitalists and try "changing the world" by funding the newest thing.

 

I don't think a private equity company would want to assume the legacy debt.

 

Chop it up and sell it.

 

Wait until they hit age 30 ...

 

That's hard to do. Right now you have a single wire desk of 7-9 people compiling national and sports wire copy to 28 papers, much of which fits nicely into page templates. If you cut it up, somebody would have to do that job for EACH of the papers.

 

They are about that age.