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View Diary: Praise For Okrent? Logrolling? (67 comments)

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  •  The new "normal" (none)
    Shares of The New York Times Company closed on Friday at $32.72, near the bottom of their 52-week range.  The share price has been in a near perfect slope of decline over the last 52 weeks, from a high of $47.27 - a more than 30% drop in value.  The shares are, in fact, at a five year low, and are roughly half the price they were at their last stock split, in 1997.

    The company pays a dividend of $0.66 per share per year, on a current $2.34 of earnings.  Earnings are expected to decline to $1.75 in 2005.  They are losing profit margins, top line, and bottom line growth.  The most probable cause of their declining fortunes is loss of market share to other media outlets.

    One conclusion that could be drawn about this financial decline, in relation to their seeming inability to cover important stories with an aggressiveness and creativity that we all long for, is that they have a vested interest in not making waves for the people in power.  Why would the CEO of a company that is losing market share, placing his company in a deteriorating financial position, pick a fight with the very people who regulate his industry?  What is that CEO's incentive to pursue a story that will essentially be a shot in his own foot?

    This is The New Normal, folks.  The world we knew, that of major news outlets that aggressively go after the powerful, the corrupt, and the manipulative, is OVER.

    "You may experience episodes of explosive amnesia."

    by redcloud54 on Sun May 15, 2005 at 05:42:30 PM PDT

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