Feeling Minnesota

Published Dec 28 2006, 04:05 PM by Adam Reilly

Does the remarkable devaluation of the Star Tribune--which McClatchy purchased eight years ago for $1.2 billion*, and just unloaded for $530 million cash, plus $160 million in tax breaks--bode poorly for the newspaper industry as a whole? Not so, newspaper broker John Cribb tells E&P. According to Cribb, small- to mid-size papers remain hot commodities. On the other hand:

Metros like the Star Tribune of Minneapolis, he said, face declining circulation, competition from the Internet, and the commodization of their international and national news franchise: "We think that part of the industry will continue to struggle and have valuation issues."

Sounds a lot like the Globe to me.

I'd bet that Jack Welch and Jack Connors will be urging the New York Times Co. to reconsider their offer.

*NOTE: Not "million," as I originally wrote. Thanks to PH for catching the mistake.