Chris Wu of Carl Marks Examines the News Media Industry's "Perfect Storm" in The Journal of Corporate Renewal

Carl Marks Advisory Group LLC Managing Director Christopher K. Wu's recent cover story article in The Journal of Corporate Renewal looks at the financial crisis' impact on the newspaper business, a once thriving industry that today has been crippled by falling ad revenues and loss of readership.

Newspapers of yesteryear constituted a high-margin, high-value business that exuded authority and enjoyed prominence as the "Fourth Estate" (behind the clergy, nobility, and House of Commons in Old Europe). News organizations were heralded as pillars of society in the metropolitan, suburban, and rural communities they served. Publishers, editors, and reporters fulfilled their mission with a duty for independence, while enjoying near exclusive domain over printed news content.

Business was consistent and profitable. In fact, for decades newspapers' cash flows sustained substantial amounts of leverage compared to other industries. At the same time, they enjoyed loyal readership and steady growth. These characteristics made newspapers very attractive long-term investments — that is, until the "Perfect Storm" hit and wreaked havoc on the industry.

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Perfect Storm Hits Newspapers: Is There
a Silver Lining?
By Christopher K. Wu

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