One emerging pattern in 2006 wa an increasing shift in ownership structures in the U.S. print media. There seems to be an increasing trend of transition from public to private ownership, or boosted equity stakes held by large, individual shareholders. We saw this with the McClatchy Group sale last year and the speculation over the purchase of the LA Times.
The latest twist along these lines is the possible sale of the Tribune Co. in the U.S. Some analysts think the bids are unlikely to be appealing. An outcome of no accepted bids will be an interesting comment on the state of investor’s expectations on the future of the newspaper industry.
Ganesha’s Gripes is expecting more sales and a greater shift from multi-shareholder to large single equity shareholder in 2007. This shift – if it goes ahead – will have both positive and negative implications for journalists. On one hand, it will buy time. The presure of quarterly earnings reports and pleasing Wall Street will be lifted. On the other, some investors will be pursuing a buy-and-flip strategy. Buy now, flip in five – or even one – year’s time.
Which one will the Trib sale be ? Maybe neither. Maybe nothing.
