Blog Post

Newspaper Roundup: Goodwill Writedowns; Harbinger-NYTCo; Media General Warns

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Lee Enterprises: E&P takes a look at the goodwill writedowns across the newspaper industry, as acquisitions have consistently failed to live up to plans. Every time there’s a goodwill writedown, the company is sure to note that it’s a non-cash charge and doesn’t effect operations, but it’s still indicative of a failed strategy. Lee is one publisher that hasn’t taken a writedown; this despite the fact that the company is a sliver of what it was worth when it acquired Pulitzer for $1.4 billion. From its latest 10-Q: “The Company analyzed the recoverability of such assets as of December 30, 2007, due primarily to the difference between its stock price and the per share carrying value of its net assets. The Company concluded that the fair value of its business exceeded the carrying value of its net assets as of December 30, 2007.” Basically the company isn’t throwing in the towel on the Pulitzer deal yet, despite the fact that the market has crushed the stock.

Harbinger: The investor group continues to buy more shares of NYTCo (NYSE: NYT). In a filing this evening, the group says it bought another 250,000 shares last Thursday for $19.42, bringing its total holdings to 27.9 million, or about 19.5 percent of the company.

Media General: Richmond, VA-based publisher Media General (NYSE: MEG) says it expects to book a loss in Q1, blaming a deep recession in Tampa, Fla., and that February revenue was down 11 percent, year over year, to $63.4 million. Interactive revenue fell 5.4 percent to $2.35 million in the period. Year-to-date interactive revenue is down 5 percent to $4.9 million. Release.