And now, newspapers’ newest problem: The vultures have descended.
Newspapers continue to lose money and advertising – the New York Times Co. reported print ads would decline 5 percent in the third quarter across all its media. But investors are actually buying newspaper properties, often through bankruptcy sales.
What gives? Are they vultures just picking over already tattered carcasses for spare change? Or do these investors expect to make significant money – somehow?
The New York Times’ Julie Creswell reports that
A handful of hedge funds, as well as some big banks, are vying for ownership or have already gained controlling interests in newspapers across the country, including The Los Angeles Times, The Minneapolis Star Tribune and The Chicago Tribune.
And it’s not just newspapers or newspaper companies. They’re buying supermarket tabs, television properties, radio and big publishers. Creswell’s story identifies who’s buying what. But a secretive investor is the most active.
Creswell calls Randall D. Smith a pioneer of vulture investing. Continue reading