(Newser)
–
Despite plunging revenue and circulation figures, plenty of people in America are still buying daily newspapers—lock, stock, and valuable headquarters. Some 71 daily papers were sold last year, and while some investors see buying a paper as a civic duty, others view it as a way to turn a quick profit, especially since newspapers tend to own large buildings in prime downtown locations, the New York Times finds.
"A lot of these companies are acquiring newspapers and looking for underperforming assets,” a media industry analyst says. “They’ll acquire the local newspapers and they’ll go in and slash operations to where these newspapers are profitable. It’s kind of like flipping houses.” The chief of a firm specializing in newspaper mergers and acquisitions says that while real estate plays a role, content also matters. "You’re buying the entire organization, which is the backbone to be able to produce a digital product," he says.
