NYT, Gannett, Yahoo, McClatchy, Apple, and Google Stocks All Get Hammered
Black & Blue Monday brought the biggest one-day point drop in U.S. stock market history. As the indices all melted down today after the House failed to pass the Bush administration’s $700 billion bailout bill, media companies — especially newspapers — were sinking fast. The New York Times‘ stock fell to $14.35; Gannett’s fell to $17; and the deeply troubled McClatchy Co. bottomed at $4.58.
The new media companies are also tanking, though they start with more cushion in their numbers. Nevertheless, Google slid below $400 to as low as $385; Apple has sunk to $104; and Yahoo is trading as low as $16.88. With credit frozen, the government unable to agree on a plan, and global markets in turmoil, many media companies may find themselves on the endangered list much sooner than was imaginable — even a month ago.
Advertising revenue is falling, of course, and there are fears that this Christmas may present a very weak retail season. A massive shakeout in the newspaper industry is already underway, but if the present financial collapse worsens into a prolonged depression, which increasingly seems possible, hundreds of papers could disappear almost overnight.
Which begs the question: What if they had a depression and nobody was left to cover it?
In addition to serving as a BNET Media analyst/blogger, David Weir is a veteran journalist and the author of several books. Weir is a co-founder and vice-president of the Center for Investigative Reporting, as well as an editorial board member of The Nation.
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