Media Roundup: Media Companies are Attracting "Debt Investors,"Seattle Paper to Become Online Publication and More

(MoneyWatch)  Media companies are attracting "debt investors" -- Several high profile investors, including former Yahoo investor Carl Icahn, are buying up media company debt. The purchase is not to save the company, but to be in a position to rake in high yields, have a voice in bankruptcy proceedings, or to acquire the company for an extremely reduced price. MGM, Sirius XM and the New York Times are all apparent "Vulture Investor" targets. [Source: New York Post]

Seattle paper to become online publication -- Unable to find a buyer, The Seattle Post-Intelligencer will likely become a smaller online-only publication. The Hearst-owned paper was put up for sale several weeks ago and no buyer emerged. Several reporters at the paper received job offers for the new publication. The paper would be the first large American newspaper to make the leap to online-only distribution. [Source: New York Times]

No slowdown in March Madness ads -- Despite a slowdown in the advertising market, CBS expects to see a 30 percent increase in Web ads over last year's NCAA Tournament. CBS, who has long held rights to the tournament, expects to generate $30 million in revenue. Because most of the games are played during business hours, March Madness typically generates an impressive Web audience of office workers. [Source: All Things Digital]

Amazon enters used game market -- The Internet's largest retailer is entering the used game market. Customers can mail in used games and receive an Amazon gift card in return. Shares of video game retailer GameStop dropped 13 percent on the news. Toys 'R Us also announced a used game trade-in plan. GameStop has tried mail-in game programs in the past, and expressed doubt that Amazon would succeed where it had failed. [Source: The Business Insider]

Google widens its array of ads -- Google announced on its AdSense blog that it will be offering new expandable ad to clients that is ideal for embedding larger format video. Expandable ads are common on the Internet, however most expand when a user rolls over the advertisement. The Google ads will only enlarge after a user clicks on them. Google will only count an ad impression if the user clicks through to the client's Web site, not when the ad is rolled over. [Source: CNET]

San Francisco Chronicle may cut 225 jobs -- The management of the Chronicle has informed the newspaper guild that up to 225 jobs will be cut. The memo also warned of cut backs in pay and benefits. Even if the cost cutting measures are taken, the paper may still be closed or sold. [Source: Editor & Publisher]