American Fortune Life

"I read today's briefing. What's up with the Miami Herald? And what's the news from the Chicago Tribune Company?"

Andy took a small sip of coffee, and after seeing Al alone in the meeting room in the video window, he put down his coffee cup and asked.

"Because of the debt, the newspaper giant McClatchy Newspaper Group intends to sell an important member of its subsidiary, the Miami Herald, and they have contacted all buyers who are interested in the newspaper industry.

As for the Tribune newspaper company, judging from the information we have collected, they will file for bankruptcy protection at a later date. However, this bankruptcy protection application should be aimed at restructuring the company's debts and will not affect the normal operation of its newspapers and TV stations. operate. "

Al explained to Andy that he was very aware of the importance his boss attached to the media industry. Regardless of the sad reminders of the current paper media, layoffs, sales, and bankruptcy, but the power of speech held by these century-old newspapers is cannot be ignored and underestimated.

Even though the market squeezed by the current Internet is shrinking, advertising revenue has plummeted, and survival is unsustainable, we have to admit that in the face of the Internet where it is difficult to distinguish true and false news from all kinds of news, the credibility and influence of these brand newspapers are still very important. People choose the first choice to discern the truth.

The advantages of the Internet are undoubted, fast transmission, rich information, and the most important thing is free, which is undoubtedly beyond the reach of traditional paper media, but because of this, all kinds of information flood the Internet, making it difficult to distinguish between true and false. This is also the biggest problematic flaw of the Internet.

Al is also aware that his boss is also reforming several newspapers in his hands. The newspapers he publishes do not compete with the Internet for news update speed, but interpret the news more deeply to help the public distinguish and understand real events. It's not just a few simple lines of words on the Internet to explain a piece of news. The speed is very fast, but it also makes people who read the news confused.

Judging from the current operating conditions of several newspaper offices, the reform is very successful. Even if it is a loss, it is only a loss of several million dollars. For Andy, this kind of small money is still acceptable to him. After all, the current economy Under such circumstances, it is difficult not to lose money.

This is why Andy dared to buy newspapers and periodicals of high-quality brands even when the traditional newspaper industry was in a downturn. credibility and influence.

In 2007, Tribune was acquired by American real estate tycoon Samuel Zell with a total amount of 8.3 billion US dollars through high-leverage debt financing and employee stock option plans. It is a standard empty-handed acquisition game. All of the borrowings were passed on to Forum Corporation, which now has more than $12 billion in liabilities.

Rating agency Standard \u0026 Poor's has downgraded Forum's debt rating to junk status last month, saying the financial crisis will hinder the group from selling assets and limiting the amount of funds it can raise.

The Chicago-based Tribune Company has been established for 161 years and is the second largest newspaper group in the United States in annual revenue and third in total circulation. Its "Los Angeles Times" and "Chicago Tribune" ranked fourth and eighth in the United States respectively.

Andy has been keeping a close eye on the main purpose of the Forum Company, which is the "Los Angeles Times" in their hands. If he wants to become another Wasserman in Hollywood, this newspaper with the most influence in California must be obtained of.

"The Los Angeles Times has been languishing in a precarious situation for the past year. It has twice reshuffled its editorial department, replaced editorial directors, and forced layoffs. At the same time, the debt situation of its parent company has never improved. Their advertising Both revenue and sales have fallen sharply.

Boss, if you want to acquire the "Los Angeles Times", you will need to spend about 200-400 million US dollars. "Al introduced.

"Huh?" Andy frowned, looked at Al in disbelief and asked, "Why is the fund range so large?"

"Located in the golden corner of the city center,

Adjacent to City Hall, the 80-year-old "Los Angeles Times" building is the key bargaining chip, and it is also the main reason for the large range of acquisition funds. The main reason why I proposed to the boss in the briefing to consider the "Miami Herald" is that this newspaper also has a building Headquarters building in prime Key Biscayne location.

As for the "Miami Herald", which only costs US$220 million, if real estate recovers in the future, this building alone can offset most of the acquisition funds spent. "

Hearing Al's analysis, Andy also sighed with emotion. It has to be said that this is a very sad thing. The situation of the newspaper industry is bleak. Their physical office buildings are probably worth more than the newspaper itself. Much higher. And if the building happens to be located in a high-end neighborhood of the middle class, then its value can be doubled.

The "Los Angeles Times" and "Miami Herald" undoubtedly have a very valuable headquarters building, and now that the United States is in the period of the real estate bubble burst, the valuation of these buildings has been completely suppressed to the bottom.

Andy rubbed his chin, lost in thought. Founded in 1903, the Miami Herald is the second largest newspaper in South Florida. In addition to Florida, it is also distributed throughout Latin America and the Caribbean, with more than 800 employees .

Its brand value is unquestionable. To be honest, Andy really didn’t pay much attention to the price of more than 200 million U.S. dollars. For him now, these are small money, just like carrying hundreds of dollars People with huge sums of money walk into the '2 yuan store' to buy things, and they will never care about spending 2 yuan.

What's more, the value for money is excellent. Since Al believes that the value of their headquarters building is very high, there must be a lot of money to be made. Andy absolutely believes in the judgment of Al, the chief think tank.

"That's it, let's send someone to negotiate with McClatchy Newspaper Group. I will fly to Miami before November 6, and the deal will be completed by then. By the way, send someone to contact the Forum Company and tell them that I am right. The Los Angeles Times is interested, and as an Angeleno, it's clear to me that Californians want the paper back in local hands..."

Al's face was expressionless, but the corners of his mouth were still twitching unnaturally. His boss really had any strange reasons. Boss, you seem to be from New York, right? Is an Angeleno living in Los Angeles?

"Okay, boss, I will arrange for someone to contact the other party right away. The Herald is not a big problem. The McClatchy Group really wants to sell and is eager to get back the funds to get rid of debts, but the Los Angeles Times may encounter some troubles. Although Samuel Zell screwed up, he just bought the forum company after all, so he may not easily admit defeat."

"Then release the news that I intend to acquire the Los Angeles Times, and let his creditors force him to make a choice. I want to see that I have a chance to pay back the money, but I want to file for bankruptcy protection, such as Barclays, Creditors like MG Chase will kindly wait for several years to help him out of bankruptcy!"

Regarding the possible troubles, Andy said very calmly, for the forum company that owes a PIGU debt, there is no need to rush to beg and be slaughtered, and they will all file for bankruptcy. Samuel's banks now have a chance to let the forum company pay the first interest, and they will definitely not make it easy for Samuel.

"Understood, boss." Al nodded and said, "Boss, when will Starbucks' acquisition plan start?"

"When I finish the work on the French side, you can start on your side. It's just time to let General Electric dry out first. Didn't they always think that I was settled? Hehe, I will transfer the acquisition target and watch them when I have time." Hurry up!" Andy sneered.

Al, who received a clear answer, nodded. He still admires some of the decisions made by his big boss. He is patient and decisive, and will not be blinded by temporary gains and losses. It is undoubtedly very surprising to appear in young people, mature beyond age.

Andy doesn't know how his most valued subordinates think of him. The only thing he has to do next is to spend all the money in his hand before the financial turmoil is over, and exchange it with money that can let him lie and earn in the years to come. Quality Asset!