Media companies can’t get rid of their publishing divisions fast enough. Yet investors can’t get enough of publishers’ stocks. So what’s the real story here?
Are newspapers and magazines a doomed, anachronistic business? Or have the surviving publishers found some equilibrium, learning how to get paid for digital content, driving down expenses, pivoting toward the broadcast business and harvesting value from New Media investments? Probably a bit of both.
The headline-nabbing performance of publishing stocks has also benefited from investors’ hunt for unloved and under-owned ideas, expectations of further industry consolidation and the fact that they had gotten so depressed over the prior five years or so. Most of the stocks leading the sector higher also own television stations, whose implicit value has surged based on recent transactions.Read More »from As Media Cos. Shed Print Assets, Investors Snap Up Shares