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Breakingviews: Gannett's print spinoff

Tuesday, August 05, 2014 - 02:51

Jeffrey Goldfarb and Reynolds Holding discuss how the U.S. media company's newspaper arm will have to fend for itself, without the support of stronger digital and TV properties.

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-- -- the American Media conglomerate is spinning off its newspapers publications like USA today. But unlike similar deals as keeping many of the digital goodies and leaving the newspapers to fend for themselves makes it a little bit different Jeff -- about. Going -- -- -- -- the backs -- this is really kind of distributors -- obviously most known as -- newspaper publisher you're right today among the most famous titles and there. Started buying up more TV stations and so now they've they've got a huge have to TV which is a much more. Valuable to rise in the stock market -- is that is newspaper publishing for numbers. Now we're separating these boot them out as many have done before Tribune. Rupert Murdoch and news or had another one last week with scripts time -- so it's. They're the focus is really telling the -- -- Don't don't get bogged down with these newspapers focused on these -- users and keep it separate. One of the best things about this view good from the point of the newspapers is there's no debt or correct or not and that's always been a big focus when these splits out now. Is how much debt is getting public timing took some criticism as they put it have to mount a -- -- -- that business. Some of the others have been virtually debt free or very little debt to help them because they are struggling industry so no you don't -- burden too much of it as you point out though that does is suggesting component to this. Where -- net today also is taking control. Of cars dot com and the parent company of course a couple of pretty big valuation of two and a half billion dollars 70% of those. Right and this is are classified selling cars pretty. Pretty good business you know. But they're keeping that digital business with the TV not giving it to the right Murdoch. Did the opposite he he what he separated out as print business as newspapers. He included in the air this Australian real estate listings digital -- -- which trades at a huge multiples especially compared newspapers you know I kind of acts as we're gonna wind beneath you know beneath it but I -- is saying no were these these fit better with TV. We're gonna let the -- kind of -- -- -- does this -- make if they're gonna split into two separate components -- of making each component more. Vulnerable to takeover of and we saw Rupert Murdoch. When he went for a different perspective looking for Time Warner now that it doesn't have time having now you've got only standalone print operations. News news News Corp. time Bryant net Brian I mean at some point you would have to think that there will be consolidation of their true in the meantime you know the valuations. I guess helpful -- problem with -- interest and stuff will be watching that story in the mean time stay tuned. For more breaking news to law.

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Breakingviews: Gannett's print spinoff

Tuesday, August 05, 2014 - 02:51