is the opposition of investment and involves the selling off of assets for financial (or political) gain. Media companies have a long history of jockeying their properties to gain advantage in some respect. Sometimes the advantage is political in nature, but almost always, there is financial incentive to either purchase more assets or sell them off. The Great Recession, which started in December 2007, led to a panic-driven divestiture trend that at least temporarily altered the conglomeration trend of the previous three decades. The landmark newspaper chain Knight Ridder exemplifies the divestiture phenomenon. Knight Ridder was the second largest media company in the United States specializing in newspapers and Internet publishing. Because of declining value, shareholders made a decision to sell the company to the McClatchy Company in March of 2006 for $4.5 billion, which represented about 9.5 of its cash flow. Within months the McClatchy Company announced that it was selling off 12 of Knight Ridder’s newspapers for about $2.1 billion
Fast-changing economic realities have bred unexpected alliances. The struggling AOL Internet content company somehow came up with $315 million in 2011 to buy the Huffington Post news site. Newsweek magazine, hemorrhaging money, became part of the company that owned the Daily Beast news site. The New York Times Company similarly fell short of cash. Facing momentous advertising losses, the Times borrowed $250 million from Mexican telecommunications titan Carlos “Slim” Helú at a subprime rate of 14%. The Times repaid the loan early, but had the newspaper defaulted, Slim could have taken control of 17% of the Times Company and become the third-largest shareholder.
Writing Prompt Applying Your Media Literacy – Ownership Structures
How have media company ownership changes affected the performance of your local
newspapers and television and radio stations?
The response entered here will appear in the performance dashboard and can be viewed by your instructor.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more