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Athletic, Axios talking merger?

Discussion in 'Journalism topics only' started by FileNotFound, Mar 26, 2021.

  1. The Big Ragu

    The Big Ragu Moderator Staff Member

    I have seen you get upset on here a few times when others treated your posts clownishly.

    I just responded to what you (not me) brought to the thread.

    And your response is that I need to loosen up and not take you literally.

    My bad.

    Hopefully, Hansmann or Mather check in here and see your gold nugget about raising prices because the product is so great.
     
  2. Sports Barf

    Sports Barf Well-Known Member

    If I asked you about art, you’d probably give me the on about every art book ever written. Michelangelo. You know a lot about him. Life’s work. Political aspirations. Him and the Pope. Sexual orientation. The whole works, right? But I bet you can’t tell me what it smells like in the Sistine Chapel. You’ve never actually stood there and looked up at that beautiful ceiling. Seen that.

    If I ask you about women, you’d probably give me a syllabus of your personal favorites. You may have even been laid a few times. But you can’t tell me what it feels like to wake up next to a woman and feel truly happy.

    You’re a tough kid. If I ask you about war, you’d probably throw Shakespeare at me, right? ‘Once more into the breach, dear friends.’ But you’ve never been near one. You’ve never held your best friend’s head in your lap and watch him gasp his last breath, looking to you for help.

    If I ask you about love, you’d probably quote me a sonnet. But you’ve never looked at a woman and been totally vulnerable. Known someone who can level you with her eyes. Feel like God put an angel on earth just for you. Who could rescue you from the depths of Hell. And you wouldn’t know what it’s like to be her angel. To have that love for her be there forever. Through anything. Through cancer. And you wouldn’t know about sleeping, sitting up in a hospital room for two months, holding her hand because the doctors could see in your eyes that the terms ‘visiting hours’ don’t apply to you.

    You don’t know about real loss. Because that only occurs when you love something more than you love yourself. I doubt you’ve ever dared to love anybody that much. I look at you, I don’t see an intelligent, confident man. I see a cocky, scared-shitless kid.

    But you’re a genius, Will. No one denies that. No one could possibly understand the depths of you. But you presume to know everything about me because you saw a painting of mine. You ripped my fuckin’ life apart. You’re an orphan, right? Do you think I’d know the first thing about how hard your life has been, how you feel, who you are because I read Oliver Twist? Does that encapsulate you?

    Personally, I don’t give a shit about all that. Because you know what? I can’t learn anything from you that I can’t read in some fuckin’ book. Unless you want to talk about you. Who you are. And I’m fascinated. I’m in. But you don’t want to do that, do you, sport? You’re terrified of what you might say.

    Your move, chief.
     
    wicked likes this.
  3. daemon

    daemon Well-Known Member

    Honest question - why would anyone pay anything for the Athletic instead of just hiring away their talent? The Athletic is its writers. If the New York Times wanted to, it could spend $50 million on hiring and put the Athletic out of business.
     
  4. The Big Ragu

    The Big Ragu Moderator Staff Member

    I think you are asking a good question.

    One thing the Athletic did that makes it difficult for someone else to compete was to be first. The industry was seeing a lot of layoffs of talented people, and even people not facing layoffs yet were looking for a lifeboat. This has been a real advantage for them. It's one of the things they have that probably has a ton of value to someone else.

    Poaching their talent would not be easy. As is, the Athletic dangled significantly higher salaries to put together what it has, and it would take even more to get those people to move en masse. If The Athletic is having trouble making its cost structure work for profitability, you'd figure it wouldn't make sense for the New York Times to try to poach all their talent at a higher price to start up something competitive. Competition can drive down revenues (by making you compete on price), while driving up the cost of talent (which is going to be the biggest expense in producing content). It's not a winning formula.

    I think you are thinking the right way, though. Let's say The Times is interested. And let's say the asking price is more than half a billion dollars. They are looking at at least four things: 1) Can we add value in some way that will bring it to profitability. 2) At that price, how long will it take until (or if) we ever see a return on that investment? 3) What do we expect that return on investment to be, and how does it compare to all the other things we can do with a half a billion dollars+ today? 4) What are the barriers to entry, because for a half a billion dollars + could we just start from scratch for less (your question)?

    The only reason any acquisition gets done is that the barriers to entry seem too great. I'd personally suspect that would be the case with this. Being first has to be a huge advantage.
     
  5. ChadFelter

    ChadFelter Active Member

    I used to come here looking for interesting journalism conversation, but then I realized this site is just a bunch of crotchety old white dudes who think people still read newspapers and poo-poo anything new just because it's new. I check in occassionally to give myself some laughs. You're one of my favorites because you always write long-winded posts explaining basic business principles they teach in high school as if you're Warren Buffet. Keep doing your thing, my man.
     
  6. Screwball

    Screwball Active Member

    The Athletic signed writers to contracts at big raises from their previous jobs, yes. But, as those contracts have expired, at least some of those writers have been asked to take pay cuts in a second contract. So maybe it wouldn't take more after all.
     
  7. The Big Ragu

    The Big Ragu Moderator Staff Member

    That would be them trying to bring their costs more in line with what they are finding they can charge.

    Competition would still mean someone else having to give a compelling reason (presumably a raise?) for people to jump ship for something new.

    Assuming that cost structure isn't quite working for the Athletic yet (although maybe it is or they are closer than I realize), someone else would really need to think they can bring costs down a lot in some other way (and salaries are going to be the biggest expense) for that to make sense for them.
     
  8. The Big Ragu

    The Big Ragu Moderator Staff Member

    It's Buffett, not Buffet.

    Although if he was a buffet, I'm sure you'd advise him to raise the prices because you can charge whatever you want for food that good.
     
    PaperDoll and sgreenwell like this.
  9. Octave

    Octave Well-Known Member

    aye, it probably is, but at least we still care.

    I like people who've logged some time in the business acting like a philosopher-king in regard to these matters.

    375 years was a good run for newspapers in our country. That's how this old dude sees it.

    Don't be sad it's over, be glad it happened.
     
    2muchcoffeeman, wicked and ChadFelter like this.
  10. Songbird

    Songbird Well-Known Member

    Now they have to keep up with the wives of the UES, first and foremost.
     
  11. Sports Barf

    Sports Barf Well-Known Member

    You literally said you know how valuations work because you watch Shark Tank
     
  12. ChadFelter

    ChadFelter Active Member

    Yes and none of you picked up on the sarcasm. Hence why I told Mr. Ragu to stop taking things so literally.
     
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