‘Moody’s Downgrades New York Times Co. To Notch Above Junk‘ is the headline in Editor & Publisher. Times are bad for the Times. Advertising revenue is down and is expected to continue in that direction, and until when is any one’s guess. Some would argue that a notch above junk is being generous.
Moody’s Investors Services believes . . .
the publisher’s free cash flow leverage will remain “significantly weaker” in 2008 than expected.
And . . .
The ratings firm assigned a “stable outlook” to the Times Co., saying it expects “greater revenue stability in 2009 as digital media generates more revenue and cyclical economic pressure eases.
I think it is wrong to expect that the downturn or recovery of the Times is part of anything cyclical like the economy. The Times’ downfall is self-inflicted by its product. And Mayor Bloomberg denies an interest in bailing them out by buying into it. Says he doesn’t want to get into the paper business. He may be a liberal but he’s not stupid.
Never fear, I’m sure there’s someone in Dubai interested in taking things over. Not that there’s anything wrong with that. al-Jazeera could make it official and just become a major investor. I mean, cutting out the middleman can be more efficient.
I love it how the free market works.