December 28, 2006

Red Star Tribune Sold: Nick Coleman Not Available for Comment

Filed under: Business Moves,MSM Biz/Other Bias — Tom @ 6:14 am

From Editor & Publisher:

Goldman Sachs Says ‘Star Tribune’ Sale a Troubling Signal for Industry
Published: December 27, 2006 9:55 AM ET

NEW YORK Early Wednesday, Goldman Sachs became one of the first newspaper industry analyst firms to analyze the shocking announcement of the pending sale of the Star Tribune of Minneapolis by McClatchy Co. to a private equity firm. In its heading, Goldman stated it plainly: “Minneapolis valuation a Bearish signal for newspaper industry.”

While McClatchy will “generate a tax benefit of about $160 million,” Goldman observes, it is also taking a hit on the sale price, having paid $1.2 billion for the paper in 1998, now selling it for $530 million.

Ouch. That’s gotta hurt. But that’s what happens when you own the furthest-left newspaper in the Midwest for 8 years and don’t do anything to excise the relentless bias, laughable polling, and consistent misreporting the Red Star Tribune has engaged in during that time.

The guys at Powerline and StarTrib columnist Nick Coleman have had a running battle going for over two years now. This post will give you an idea of who has the upper hand, and why the newspaper’s value has dropped like a rock.

Maybe McClatchy might have gotten another $50 million if they’d have promised to fire Coleman first.

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UPDATE: Twin Cities area resident Captain Ed has more:

Incidentally, this can’t be blamed on the general decline of the newspaper industry. Certainly one might expect that the value may have declined over the last few years, but the industry has not lost over half its valuation. This fire sale comes as a result of the mismanagement and editorial disaster that the Strib has become. Despite having some talent, the Strib’s editors have turned it into a laughingstock as an objective journalistic endeavor. The sale price confirms the embarrassment that our local newspaper has become.

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