A kick in the groin

I knew it was bad, but Forbes details how bad McClatchy’s fall is: As Steve Yelvington notes, the entire company now has a market cap of $1 billion, which is what it paid for the Star Tribune (which it sold for about half that, says Forbes). The stock has falled from a split-adjusted high of $76.05 in 2005 to $12.75, a fall of 80%. It bought Knight Ridder for $6.5 billion, sold off papers to get $2.1 billion, but then wrote off another $1.37 billion and, again, today the whole kaboodle is worth only $1 billion. “Total ad revenue was down 8.5% through the first 10 months of 2007 from the same period last year, including a vertigo-inducing 21% plunge in real estate ads and a 16% drop in automotive ads,” says Forbes. Ouch.

  • Walter Abbott

    Good riddance, I say. After the McClatchy owned Raleigh News & Observer’s inflammatory reporting about the Duke Lacrosse (non) Rape case, they deserve to go out of business. They, along with the Durham PD and District Attorney and others, framed three innocent men and tried to conduct a modern-day lynching. It ranks with the Scottsboro Boys case in the degree of injustice inflicted upon innocent people.

  • tcr

    @ Walter Abbott,

    You, sir, are an idiot.

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