Saturday, December 17, 2011

Missing a Bet

Janet Robinson, CEO of the New York Times Company has suddenly announced her retirement. During her tenure, in seven years, the company has lost about 80% of its value, and probably about the same percentage of its credibility.

Here's the opportunity: Rupert Murdoch, owner of the Times biggest competitor, News Corp, could offer to pay Mrs. Robinson's salary and benefits for another two years, at the end of which times, one would expect the Times to go out of business and completely disappear. That would be $10M well spent.

Alternatively, he could buy the paper after one year for a relative pittance, and keep the employees doing what they do best by turning it into a grocery-store tabloid. The possibilities are vast.

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