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Sun-Times Files for Bankruptcy
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The Chicago Sun Times files for bankruptcy. It owes the IRS $510 million in back taxes for 1996-2003 when Hollinger International, which controls the Sun Times, was owned by Conrad Black, who was convicted of fraud. It had an operating loss of $344 million in 2008. Its newspaper the Sun Times has a circulation of 313,000. The Sun Times had expected advertising revenue to drop 30% this year. The Tribune Company, which owns the CHicago tribune and the Los Angeles Times filed for bankruptcy in 2007 Dec. Other papers that filed for bankruptcy include the Philadelphia Newspapers and the Star Tribune Holdings of Minneapolis. Sun Times stock which was at $6 in early 2007 was at 2 cents in April 2008!
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The premise for growing entrants in online news sites with special focus on tech, media and politics is the idea that the main newspapers have failed to link up with younger people. The other idea behind this is the prospect of internet sites making it with the sale of the Huffington Post for $415 million to AOL.
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Sun-Times Files for Bankruptcy
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Investment of about 500 million dollars by Berkshire in small town newspapers and the Richmond News Dispatch. The Berkshire investments frees the newspapers from loans owed to banks giving them much needed breathing room. Warren Buffett of Berkshire helped deliver the Omaha Herald during his school days.
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