Recent newspaper sales put lower value on MNI, doesn't it?
With the recent sale of the Boston Globe and associated Internet properties for $75 million combined with the sale of The Washington Post for just $250 million, it shows how little value these newspapers truly have in today's Internet world. Valuing MNI on these metrics, including the Pruitt debt load, puts the value of the entire company at under $40 million. Is this one destined to go back to less than $1per share? scary thought, but who would have thought the Globe was going to be sold at a $1.2 billion loss to NYT company.
A recent post I saw on McClatchy watch showed newspaper ad revenues down 55% from their peak, while online revenues have gained only $1 billion, or 20% since 2008. There can be no other way to say this, there is no chance of significant long term improvement and return to financial health of any publicly traded pure play newspaper company. Most of these companies will be eaten alive by their outstanding pension liability agreements.
This stock is certainly headed south, glad I sold Monday