Mango
舉債併購潮肇禍 報業泡沫化
Newspaper industry is Bubbling because to raise debt to get the mergence trend.
Tribune Company, the second biggest newspaper group in the U.S, was beat down by the economic recession, and applied Chapter 11 bankruptcy at 8th. Comparison with the U.S. newspaper groups were competing to merge other minor journal about one to two years age, now they have to downsize internal part, sell multi-storey buildings, and even announce bankruptcy. These reveal newspaper industry, as real estate, is facing the crisis of the bursting of bubble and requiring reorganization to restart.
First, most of newspapers are still getting profit, but the net profit is shrinking. In the whole view, the advertisement income is less than 15% this year.
Even though they have ample financial section, the trend of mergence was springing up in newspaper industry two years ago. Newspaper companies raised debt to merge others in high price. Tribune Company was sold to the real estate tycoon, Gerald who took packing a 12 billion loan with bank, with the high price 8.2 billion. Now, the tribune group has Chicago Tribune, Los angle Times, and 23 TV stations. The debt of this group is 3 times bigger than its assets.
Last two years were reaching the highest peak of mergence trend. Before Gerald made the big deal with Tribune Company, the eighth biggest newspaper group MaClatchy spent 1.5 billion merging Knight Ridder which was bigger than MaClatchy. Besides, International media News Group bought San Jose Messenger and The Vanguard. Furthermore, Philadelphia Inquirer and Philadelphia Times were merged, which one of last year big news in newspaper industry.
“Even the consortium stably develop, it never join the battle of newspaper mergence. Newspaper industry faces the hard battle. 10 to 15 yeas ago, most newspaper offices had low debts, but the newspaper companies’ financial lever system are getting high even put themselves in danger,” said Patiala who is senior analyst in credit estimate institution Moody Investor Service Company.
Most newspaper offices are still making money, subtracting interest, tax, exchange rate cost, and installment, the profit is about 10% to 20% which is lower than few years’ 20% to 30%. They still can operate normally, but with huge debts are totally different.
Most newspaper offices credit assessment is level down, which is under the investment lever. Those companies will face more challenge and pressure, and it is predictable that there are more companies applying bankrupt protect in the future, said Salvatore who is an analyst in “Gimme Credit,” company of marketing research.
Many newspaper offices are trapped in debts, now are selling assets to get cash. The whole economy is not good, it is hard to sell even cut price, said analyst Joyce. Newspaper industry is no different with real estate, after 2 years prosperity now is on the way to bubble.
Ps 翻得很快,所以應該有些錯誤
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