McClatchy Company (The) MNIQQ

Communication Services

The McClatchy Co provides independent local journalism to various communities with operations in few states, as well as selected national news coverage through its Washington, D.C. bureau. It also provides a full suite of digital marketing services, through local sales teams and excelerate, its national digital marketing agency. The company is a publisher of brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the F

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McClatchy Company (The)

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Post by vforvalueon May 23, 2008 2:02pm

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Post# 15104518

Several Problems

https://www.stockhouse.com/Columnists/2008/May/15/Newspaper-publisher-on-slippery-slope

Problem 1: Debt -This article explains McClalatchy's Debt problem, andone of many problems, that this company is facing. It bout out itscompetitor Knight-Ridder by borrowing money. However, it has not been successful in paying back its huge debt.

Problem2: Cash- Quarterly results show a negative net change in cash flow.Inspite of this, this company continues to pay off a big dividend toshareholders instead of paying off its debt!

Problem 3: Improving- thisnewspaper company is not going to survive without going online ortransforming, MNI isn't doing any of that. And if it wanted to, itcouldn't because of problem 1 and 2

Problem 4: Low earnings = Low income

Solution: MNI needs to find a competitive and successful advantage over its competitors to make it out alive

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