Early "Black Friday" for NY Times, Media General
New York, N.Y.
The end of the week brought yet more bad news for several big media companies. Everywhere I went around town, I heard tales of layoffs –at Time-Warner, huge stock selloffs (Media General), slashed dividends (New York Times), as well as hushed conversations with journalists of all stripes. (”I’m worried about what’s going to happen to this place.”)
One shocker was just as the New York Times stock fell below $5/share on Friday, Morningstar announced that the stock is in fact worth 40% less than that. Morningstar analyst Tom Corbett slashed the estimated “fair value” of New York Times from $10/share all the way down to $3.
Investors were already dropping the Times stock on Friday because of the news after markets closed Thursday that the Times Co. was cutting its quarterly dividend by 74% to 6 cents a share, down from 23 cents in the prior quarter.
Another industry giant, Media General lost 37.67% of its value Friday to close at $1.39/share. The losses were almost completely caused by a giant selloff by the Harbinger Capital Partners Master Fund, a hedge fund.
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.
BNET User Analysis