Newspaper Roundup: McClatchy; Sun-Times; Journal Comm
This story was written by David Kaplan.
McClatchy online revs up 10.6 percent: The newspaper publisher's November revenues showed more of the usual pain, as total revenues were down 19.4 percent and ad revenues fell 22.4 percent. The main drag on revenues continues to be classifieds, which plunged 36.1 percent. Here's how glimpse of how bad November was: McClatchy's help wanted ads plummeted 51.8 percent and real estate dropped 40.1 percent.
Sun-Times Media Group derides hedge fund's "wishful thinking": The other troubled Chicago newspaper publisher is facing a proxy war against dissident shareholder Davidson Kempner Capital Management. In a shareholder letter, the Sun-Times calls the hedge fund's turnaround plans "glib" and offers nothing more than "wishful thinking." Meanwhile, DK has called the current board "feckless" and says it new board would enact more dramatic cuts, aggressively negotiate the IRS' $600 tax claim against the company, and find ""unexploited opportunities in community newspapers, online publishing, and community internet sites."
Journal Communications cut 17 newspaper jobs: The Milwaukee company has laid off 39 workers, with 17 cut at its newspaper. The Milwaukee Journal Sentinel closed an ad unit "which was no longer productive." Some staffers in the classified ad unit were also let go due to lower sales volume. Meanwhile, the company has brought back a former CFO to serve as a $400-an-hour consultant. (via Footnoted and Romenesko)
By David Kaplan