It’s the debt, not the Net

Readers’ Digest continues with its debt problems, being one of the many US publications in bankruptcy, and in its latest move swapping debt for equity (i.e. ownership), of the venerable magazine. Only affects US magazine, but again illustrates that the biggest problem with most North  American publications is not the ad slump (which they’ve ridden through many times before) but the huge debt overhang they have, usually from reckless moves ten years ago to get into “convergence”, one of the worst business strategies of the new century. The Net isn’t killing them, it’s the debt.

Christian Science Monitor, August 18 2009

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