Tough Times At The New York Times
Bad news for the New York Times Co. stock this morning.
Citigroup investment research group has downgraded Times Co. stock from "hold" to "sell." After the report's release this morning, Times Co. stock (NYT) opened down. UPDATE: As of 2:20 p.m., Times Co. stock was down nearly 3 percent on the day.
The Times Co. has been struggling in recent months. The company sold all of its television stations to raise money, one major institutional shareholder is pressuring the company to discontinue its two-class stock system that gives the family owners more voting power than other shareholders and the stock has been in steady descent since the beginning of 2004.
This is how bad things are for the Times Co., if you're a fan of the Times: Citigroup says one of the biggest things going against the Times Co. is the unlikelihood that it will be sold.
What's wrong at the Times Co. is pretty much what's wrong at a number of other papers, even The Washington Post Co., to an extent: Shrinking circulation and ad revenue. In a companion report also released this morning, Citigroup said U.S. newspapers should continue to expect profits to slide for the next five years until online advertising at newspaper Web sites--which is growing, but still relatively small--can take up the slack.
In Internet time, five years is forever. What will the Times and The Post look like by then?
Today In The Post:
* We've got two takes on companies bringing video to your cell phone. Yuki Noguchi reports on Verizon's deal to bring YouTube videos to users. Tech columnist Rob Pegoraro is less than thrilled with the idea.
* How's this: A Google exec believes that, within 12 years, an iPod will be able to "hold all the world's TV."
* Stephen Colbert plays the Nintendo Wii, calling it the top threat for the holiday.
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