WE ONLY KNOW WHAT WE READ IN THE PAPERS.COM
Newspaper/broadcast conglom Tribune Co., which not too long ago announced its $6.5 billion merger with Times Mirror Co. to become an even bigger conglom, has let go 80 staffers from its Internet unit. The company hopes the cuts will help it reach profitability amid merger adjustments.
As a result, folks from LATimes.com (20 layoffs), ChicagoTribune.com (six redundancies) and other cyber-outposts will be e-mailing their resumes.
Meanwhile, the New York Times Co. has retreated from a proposed IPO for its Web entity, for which it filed in January. The reason? See if you can guess. And no, it ain't Hilary Clinton's Senate bid.
Considering the tumbling Nasdaq and disastrous fate for online media startups of late, the move isn't terribly surprising. Similar IPO plans were scrubbed by Dow Jones & Co. and MTV Networks, which also downsized its MTVi division considerably.
Both Tribune Co. and NYT shares were down today, much like the rest of the market. Tribune Co. stock was off $1.25 to $38 7/16, while N.Y. Times shares dipped $1.63 to $34.50 on the NYSE.
"It's quite evident today's market is bearish on Internet companies, regardless of how well they are performing," said N.Y. Times Digital head Martin Nisenholtz. "Now will you excuse me while I wallpaper my bathroom with some of this nifty ArtistDIRECT stock?"
In a related story, HITS' Web division may be forced to cut workers' pay from six to four saltines per week and todownsize at least one hamster.
