Another Sign That Newspapers Are Dying
A few days ago, Wick Allison at Frontburner did some back-of-the-envelope calculations and concluded that A.H. Belo, publisher of The Dallas Morning News, was at risk of running out of cash. Today, Tim Rogers highlights the growing difficulties at Dallas' only daily by comparing the company with the Huffington Post. AdvertisingAge says that the online newspaper recently took a $25 million investment at a $100 million valuation, compared to a $35 million market cap for publicly traded Belo. Ouch. Worse, Huffington Post employs 46 people compared to 3,700 employees at Belo. Double ouch. Worse still, the Huffington Post plans to use the cash infusion to branch out into local editions, setting itself up for direct competition with print dinosaurs like The Dallas Morning News. Ouch. Ouch. Ouch. While companies like Belo dithered, reluctant to cannibalize their print product and treating their online product like a sideshow, companies like the Huffington Post are moving in and taking over.
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