A NY Times’ report says Raleigh News & Observer’s parent McClatchy Company:
"… burdened by debt and a steep slide in newspaper advertising, wants to sell one of its most prized properties, The Miami Herald, according to people briefed on the company's plans."The NYT’s story has some people asking: “What about the Raleigh N&O? Is 'the ol' red rooster' on the block, too?”
The best answer I can give is this:
There’s been no official public announcement the N&O’s for sale.That said, a fair distillate of what I’ve heard from intelligent people knowledgeable about McClatchy and the N&O is this:
Neither N&O publisher Orage Quarles nor McClatchy CEO Gary Pruitt has said the paper's for sale.
For the past few years I’ve asked people about McClatchy’s and the N&O’s prospects in the face of declining circulations and ad revenues.
Adding to those declines are McClatchy’s costs servicing its $2 billion in debt, with that debt service made more costly by the “junk” rating of McClatchy’s bonds.
McClatchy’s top executives and senior editors at the N&O profess to be very positive about the company’s and the N&O’s futures.
The masthead of just about every American newspaper should include: No reasonable offer refused. But hurry.McClatchy needs cash now; and lots of it.
A person who wanted to be described only as “just fairly intelligent and with no insider information about McClatchy” said:
"Given McClatchy’s desperate need for money and the declining value of newspapers, you have to believe McClatchy would jump at any offer for the N&O that provided quick cash.I think that person makes a lot of sense.
"But that’s true for all McClatchy’s papers. It’s fire sale time in Sacramento."
What do you think?
The entire NYT story's here.
Thanks go to each of you who’ve passed on the NYT story and other stories reporting the Miami Herald is for sale