Managing Editor Mike Burbach with a Dear Readers: column on page A1 on Sunday and Dave Giffels in his column on page B1 tackle the confusion over possible sale of Knight-Ridder. Since he's the boss we will post Burbach out front. You can click on the headline to read Giffels who is a little more interesting--talking about getting a case of notebooks in response to rumors of hard times at the BJ. Here's Mike:
Paper's future unclear, but work goes on
By Mike Burbach, managing editor
The Beacon Journal has been thinner lately. What's going on?
Most newspaper revenue comes from advertising. When the local economy slows down, there's less advertising. Less advertising means a smaller paper. That's been the case this year in Akron.
Q: Is the Beacon Journal going to be thinner permanently?
A: No. But our business is changing, and we have to adapt. The paper will change in the months to come to emphasize the news, information and advertising that have the most value to our customers. We know that we can't be everything to everybody.
Q: Is the Beacon Journal up for sale?
A: Yes, indirectly. The Beacon Journal is owned by Knight Ridder, which is a publicly traded company.
Earlier this fall, Knight Ridder's largest shareholder, an investment company based in Naples, Fla., demanded that Knight Ridder put itself up for sale. The company has done that and is considering bids.
What's going to happen to Knight Ridder?
A: We don't know. Another media company might buy it. Some other kind of company might buy it. It might ``go private,'' meaning an investor or group of investors buys all the stock and takes the company off publicly traded exchanges. Knight Ridder might remain independent, and continue to operate. Or there could be some other result.
Q: What does this mean to the Beacon Journal?
A: Long term, we don't know. The Beacon could remain part of Knight Ridder or a company that buys Knight Ridder. The paper could be bought by one company and sold to another, or it could be bought by an individual or group of individuals.
Short term, it means more pressure to deliver the financial results that are expected of us. And that means we must keep tight control of expenses AND pursue new business and revenue.
Neither Knight Ridder nor the Beacon Journal is losing money. Both are profitable.
The big investors who own Knight Ridder say the company should be more profitable, as some other newspaper companies are.
Q: So, you're in limbo right now?
A: Yes and no. Yes, in that we don't know what will happen with Knight Ridder. No, in that every day we aim to deliver news and advertising to you to the best of our ability.
Our commitment to greater Akron and to the principles of good journalism and good business is not in limbo. It remains.
We're determined to do the best we can with the resources we have. We're determined to do everything we can to manage through this transition -- whatever it turns out to be -- constructively.
It's a difficult time in the newspaper business. We're straddling media -- print and the Internet, particularly -- and generations. Older people grew up getting much of their news from newspapers, and younger people have grown up getting much of their information on the Internet.
One of our challenges is to make sure our business is strong so we can continue to serve the community with compelling journalism. We intend to do so.
Reach Mike Burbach at 330-996-3507 or mburbach@thebeaconjournal.com.
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