U.s. Newspaper Advertising Declining Serious Crisis Facing The Survival - Advertising, Newspaper -

2008 12 9 10 o'clock in the morning, "Los Angeles Times" in the station's internship Evan came to office as usual

. When he opened his mailbox, a message that stunned him: "Los Angeles Times," the parent company, the second-largest U.S. newspaper group?? Forum company may file for bankruptcy protection came from all sources, concerned friends asked him about trends. Just 15 minutes later, his superiors in the office confirmed the news. On the same day, "Los Angeles Times" published a news website officially.

12 8, the United States on Monday, with "Los Angeles Times," "Chicago Tribune", "Baltimore Sun" and more than 10 daily newspapers and 23 broadcast television stations Tribune Company, for whoever ad severe decline and Network The impact of media, formally Wilmington, Delaware federal court filing for bankruptcy protection, a network of universal bankruptcy since the first major U.S. newspaper groups.

Publisher in the company, Chief Executive Officer Eddie? Hatton Stan Readers of the open letter, he said the Forum Group, under the "Bankruptcy Protection Act," carried out by the debt restructuring is a long-term benefits from the protection point of view of. "All the bad luck of the things we have encountered?? Income declined sharply, the economic downturn, the credit crisis makes it difficult to get loans. All of our major advertising columns are subject to a severe impact." To the staff at the same time letter, the big boss Sam? Zell emphasized that "we will continue to do our business."

"Grave dancer" into the press who dug graves

In just a year ago in December 2007, Sam? Zell high of 82 billion won the Tribune Company, in which 8.2 billion U.S. dollars, only 315 million dollars from his own pocket, while the remaining raised through borrowing. For others, this may be an incredible thing, but the leading character has changed Sam? Zell, things is not surprising. The 67-year-old billionaire Chicago real estate giant Henry, the industry's nickname is the "grave dancer", which is really an image of the appropriate metaphor, because Sam? Zell to save the dying company and profit known, known as the U.S. housing sector, "Uncle Sam."

Bluntly, Sam? Zell is a shrewd opportunism, but also the chips in play were greater than others. And such symptoms as early as his school when channeling out. He has bought a number of "Playboy" magazine, and then resold at high prices of small partners to reap profits. The mid 60s in the last century, is attending the University of Michigan Law School, Zell has already started to buy real estate in Ann Arbor. After the market crash in 1973, Zell took three years to nearly 3 billion acquisition of real estate assets, the capital, most of which only one U.S. dollar down payment.

In high-profile acquisition of the Forum Group, the outside world once that Sam? Zell crazy badly, because his line of work has begun to decline in real estate, and one of the main source of advertising has also been declining auto industry, this time to Bank lending is not a wise move, but do not forget Sam? Zell's creed is contrarian investment.

Zell turned speculative history, his success in real estate, but the newspaper industry is not too much contact with the acquisition, he is no way to change the situation of press and reduced profits. Zell's acquisition of loans, making Tribune Company debt had reached 13 billion U.S. dollars, which are required to pay interest on the debt in the first half of 2008, up about 5 billion U.S. dollars. As planned, the debt will be used instead of asset sales to repay working capital, these assets include the Chicago Cubs baseball team, office buildings, big city newspaper. May 2008, Zell sell the Long Island newspaper Newsday, income 650 million U.S. dollars; in September, He used the 135 million U.S. dollars sold Career-Builder.com Web site a large part. In June the Tribune Company in Chicago and Los Angeles public sale of headquarters building, but still no buyers shot, but a similar dilemma also occurs upon in the Chicago Cubs baseball team.

Swept the global financial crisis, the credit crisis shattered the net assets of many potential buyers, Zell increasingly sad day together, and finally, the sale just a year's Forum Group, the acquisition became final a choice.

According to "Los Angeles Times" reported the Tribune Company now cash flow of about 300 million U.S. dollars, can be paid on December 8th the day of a 70 million U.S. dollars due on the debt, but the inability to repay maturing in June 2009 5 more than 100 million U.S. dollars of debt, and in 2008 about 10 billion dollars in loan interest. Sam? Zell speculative myth finally could not continue.

"I think I need to be a direct agents of change, I guarantee that will not disappoint you." This is Sam? Zell took over in December 2007, CEO Forum, said the words. One year later, the fact that deviated from the "grave dancer" of the imagination.

"The facts as we see it, even my superiors in the office, said Sam? Zell is a big jerk." Evan said, although the owner has repeatedly said the parent company's bankruptcy filing will not affect the newspaper for the time being reports, but we all had to sweat in the inner mold, after all, faces an uncertain future.

Evan's superiors, a senior foreign correspondent of the Uncle Sam very contemptible, old real estate magnate who has been trying to change the culture editor of Times to press a change of its head, warned reporters not to the total think of the Pulitzer Prize, "Zell said at a meeting 'news is that readers want to write the news, if news readers like dogs, they should be given the dog the news.' He did not much press interest, only care about profit. "

by: gaga

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