Monday, February 23, 2009

Sun-Times Media Group

In mid-January, as my readers may recall, Davidson Kempner announced the success of its consent solicitation campaign with regard to the Sun-Times Media Group. I blogged as much here.

On January 22, the Group acknowledged the receipt of the requests in a brief press release: "Okay, we see that we've lost. Bye."

Well, not exactly in those words, but that was the spirit of the announcement. Subsequent press releases from the Sun-Times have been posted presumably by appointees of the incoming bosses.

Question: What has the switch to new management done to the stock chart (OTC: SUTM)?
I posted a chart in my Jan. 21 entry, should post another one here. There's been no miraculous post-DK takeover turnaround. The stock is now selling for around $0.05 a share.

On a related subject, L. Gordon Crovitz has a very intelligent, insightful column in today's Wall Street Journal under the heading "Information Wants to be Expensive," about the troubles of the newspaper industry today, the costs of being hip about your on-line presence, and the belated rise of the for-subscription model.

Crovitz says that managers have to ask themselves, "What kind of journalism can my staff produce that is different and valuable enough that people will pay for it online?"

Good question. Good point.

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