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Today's WSJ has a good summary of the dilemma faced by Tribune Co., one of the country's largest newspaper publishers. Stock is off 36% in three years and is at an 8-year low.
Wall Street says sell off the TV biz, but of course that would leave TRB holding an empty bag in terms of growth.
The CEO is taking on a risky restructuring: Borrow up to $2B, sell some assets and cut costs.
Meanwhile, the overall ad market is up 5% although you would never know it looking at a 2-year stock chart for major newspaper publishers.
The challenge is to be on the right side of the disruption hammer. If I had to guess, I would say Mark Cuban is on the right side.
**Late Addition/Self-Critique**
On reflection, I want to be more constructive about the options available for media companies to evolve & grow. As a starting point, to construct a future-proof media company, what might be the elements to consider? Here are a few questions:
- What are the attributes media consumers value and pay for today?
- What are the sociological trends that will drive consumer needs and values for next 10 years?
- What are the attributes media consumers no longer value & pay for?
- What are the business processes & attributes of media companies that are out of synch with point one and that should be sloughed off?
I am going to chase down some smart media observers to offer their suggestions on this one...Watch for more posts.
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