Ah, how the mighty fall. Even in this cynical age, it’s unusual and unsettling to see industry giants to fall victim to the new recession. In Monday’s case it was the Tribune Company, which filed for bankruptcy. It’s $12 billion in debt.
It was intriguing when last year Sam Zell, a former successful radio and real estate investor, bought the long-standing company with reckless Mark Cubanesque zeal and took it private. But many observers immediately noted flaws in Zell’s business plan for the newspaper-heavy firm, which in recent years had diversified itself in an attempt to remain competitive in the new yet more pitfall-filled economy (namely acquisition of the Chicago Cubs).
Zell says the bankruptcy won’t affect operations at the Cubs or the newspapers or the relatively new employee ownership stock plan. Uh-huh. Ultimately, indeed it’s true. Newspaper-heavy companies must seek ways to diversify its portfolio and remain relevant in the eyes of their readers and advertisers. If that means finding unique ways to compete with burgeoning news websites, so be it.
The web, for the most part, is the future that partially is already here. A venue for people to access a variety of constantly updated information at a moment’s notice. It’s more than valuable and, for most people, easily accessible.
But one can never really replace the unique feeling – especially for those who can’t afford mobile technology – of having a newspaper, feeling a tangible piece of information, entertainment and history, right in the palm of your hands. So in the meantime folks, let's save those newspapers -- especially the one I'm working for!
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