Newspaper Values to Rise in '97

Editor & Publisher, March 8, 1997 | Go to article overview

Newspaper Values to Rise in '97


The following is an edited version of a report by Dirks, Van Essen & Associates

Daily newspaper values should rise for the fifth straight year in 1997 as acquisition activity remains strong.

Newspaper groups strong financial performance, supercharged by newsprint prices substantially below year-earlier levels, will fuel the continuation of the four-year recovery in newspaper values that started in 1993.

The climb in newspaper values since the recession of the early 1990s has brought prices to levels approaching those of the late 1980s.

The financial strength of buyers (particularly medium-sized groups), combined with the availability of capital at low interest rates, will continue to provide the demand for newspaper companies, especially those with strong franchises.

The supply will come from newspaper owners enticed by:

* Historically strong prices expressed as multiples of cash flow and revenues.

* Newspaper groups paring their portfolio of newspapers for strategic reasons pertaining to size or geographical location.

* The tax-saving expiration of the 10-year term required of companies that adopted Subchapter S status when tax laws were changed on Jan. 1, 1987.

Newspaper acquisition activity is off to a quick start in 1997. In January alone, 11 separate daily newspapers were announced.

The strong market for daily newspapers in 1996 resulted in a near-record number of properties being sold -- 118.

The activity almost matched the record year in 1986, when tax-law changes brought an unprecedented number of sellers to the market and 119 daily newspapers changed hands. Previously, the second highest number of daily newspapers sold in a single year was 105, which occurred in 1993, as the industry began to move out of a severe recession. In 1995, a total of 87 daily newspapers were sold. A sale is recorded in the year in which the deal is announced.

Daily newspaper transaction volume totaled nearly $2 billion in 1996. the fourth highest level ever recorded, the report noted. This compares with more than $3 billion in transactions the previous year. However, in 1995, a single transaction -- the newspaper portion of the Capital Cities/ABC sale to Disney -- represented approximately one-third of the total volume. There was no such billion-dollar "blockbuster" transaction in 1996.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Newspaper Values to Rise in '97
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.