Because the Union-Tribune isn’t exactly coving it’s own sale, the Voice of San Diego had this bit from Randy Dotinga’s article:
"Given the devastation and uncertainty in the industry, it is unlikely that a public company would make a large purchase right now, as they would have their head handed to them," said Lauren Rich Fine, a retired Merrill Lynch newspaper analyst who teaches at Kent State University.
Instead, analysts think the most likely buyer would be a private company or a group of investors. But even that's a long shot considering that the few newspapers on the block aren't attracting offers.
At this point, everything is speculation, of course. Details about the U-T's financial condition are hard to come by since it is privately owned and not required to release data publicly.
One thing is clear, however: Battered by sharp falls in subscribers and advertising, the nation's 21st-largest newspaper is not in a position of strength. Its bid for buyers seems to be a sign of desperation.
"It defies all reason to want to sell the newspaper now, unless they believe that things are only going to get worse from here," said Alan Mutter, a media analyst and former newspaper executive.
What I find interesting is that even though San Diego is the 6th or 7th largest city in America, the U-T has the 22nd largest circulation of the country’s major dailies.
Maybe the free-marketers on the editorial board should do a piece on how their own newspaper’s inability to compete, especially in a monopolistic situation, is a sure sign that they shouldn’t be in this business in the first place.
The Voice the San Diego is regularly scooping them with one-tenth of the resources and nowhere near the same size of staff, although with layoffs at the U-T there may now be parity.
Diversification of portfolios, especially when it comes to revenue streams, is a basic lesson in business. I guess the management at the U-T thought it better not to try to improve their product beyond the superficial.
Well, the market has spoken.