Thursday, 30 April, 2009

Will Canwest series on newspapers look at the actions of the Aspers?

By Charlie Smith, via The Georgia Straight:
Canwest News Service launched a series today (April 25) regarding the siege mentality in the newspaper industry.
The first
article pointed out that many newspapers are profitable and that advertising in them is worthwhile; the problem is that big media companies are having trouble paying down huge debts.
For the benefit of the taxpayers, I hope that this series explores why this is the case.
Huge media conglomerates such as Canwest Global Communications Corp., CTVglobemedia, and Black Press went on acquisition sprees at precisely the wrong time.
In the current economic environment, it's not too tough to make the case that these companies' executives, who are sometimes lionized in their own publications, made stupid decisions by piling up huge debts just as the business cycle was heading into a downturn.
Now, newspaper companies with broadcasting assets (i.e. Canwest and CTVgm) want the Harper government to bail them out by creating new revenue streams paid for by consumers through their cable bills.
Here are some things that the Canwest series should highlight:

Read the rest here.

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