It’s no secret that most media stocks have been in the doldrums of late. Yesterday, they got a bounce. The reason: Belo’s decision to spin off its newspaper business into a separate company, The result would be two companies, one focused on broadcast, the other on newspapers/print.
There are a lot of media companies with print/broadcast operations. Gannett, the nation’s biggest newspaper publisher, owns a bunch of TV stations, as does Media General, which owns the Journal, and saw its stock jump about 8 percent in trading yesterday. MG owns 20-some newspapers in the Southeast, and about the same number of TV stations, also mostly in the Southeast. I have no inside info into the honchos who run our company in Richmond, but publicly traded companies with a variety of businesses always face this problem. Companies with publishing heritages, such as ours, are treated as old-line businesses, with accompanying diminished expectations. Despite our efforts to rebrand ourselves as an “information provider,” that message has a hard time taking hold in the eyes of Wall Street and the investing community.
My best guess, the transformation and realignment of public media companies is starting to pick up steam and will accelerate in the next year to 18 months.
IN THE NEWS: Paul Garber, one of our staffers, writes a nifty blog for us called Fathers After 40, which is as you might surmise about the challenges and joys of being an older father with a younger child. It’s getting noticed, most recently in an ABC News story about all the presidential candidates who have kids much younger than their chronological age would suggest.
Your host is Ken Otterbourg, the managing editor at the Winston-Salem Journal. It's a forum to discuss the media, from