Some good news for Canadian media

From the Canadian Journalism Project, an interesting economic analysis of the strengths of Canadian media. The usual suspects are there — radio, community weeklies, selected magazines, but I particularly like the view of Leonard Asper: “Canwest chief Leonard Asper has been grumbling to anyone who will listen that his media company earns $500 million a year in operating profit, before the cost of those pesky interest statements.” And I like the author’s response: “He’s right. If bankruptcy eliminated a whack of long-term debt from Canwest properties, the newspapers and television stations would be making money.” As I’ve been saying for some time, bankruptcy might be the best solution for CanWestGlobal.

Canadian Journalism Project, March31, 2009

Chicago Sun Times latest to file for bankruptcy

It’s now the fifth major US newspaper group to file for bankruptcy, or more accurately creditor protection. This allows the Sun Times to hold off creditors while they try to sell off assets or obtain outside funding. Either way, it’s going to mean more cutbacks and layoffs. This is what Can West Global has been trying so hard to avoid (its creditors have given it another month to come up with a plan; stay tuned.)

Associated Press/Canoe News, March 31 2009


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