The New York Times Company wrote off more than $800 million of the value of its New England newspapers, primarily the struggling Boston Globe. The company bought the Globe for $1.1 billion and other papers for almost $300 million. So that seems to put the value in line with the value Jack Welch’s bankers put on the unit: between $500 and $600 million. I repeat: I don’t know why any company wouldn’t sell any newspaper to a willing buyer; it’s sucker money. And I don’t know why those willing buyers don’t start new news networks — note: networks more than products — without the encumbrances of physical plants and old business methods. There is a huge opportunity to enter one of these markets with fresh competition. And then watch the value of the old fall even more.
by Jeff Jarvis