Is the Boston Herald replacing Dean Johnson?
Fri Jun 17 00:21:06 EDT 2005
On Thu, 16 Jun 2005 23:44:31 +0000, "radiotony" wrote:
> Unless the paper is $7 million in the hole and the older reporters won't
> take a pay cut to stay. However, Purcell has been starving CNC for years -
> the real money maker of the operation - while throwing money at the Herald
> and making it more tabloid, which is losing him money. While he didn't want
> to do this - cut staff - he should have done it right after 9-11, and pumped
> more money into CNC. Instead, he went the opposite way, and it has cost him.
> As well, CNC was overpriced at $160 million. He has been able to renegotiate
> the notes but the investors aren't happy with the meager 2 percent returns
> during this recession. Now, he is back in the hole ...
Sure, CNC was overvalued in terms of purchase price, but for Purcell it was
worth every penny of that $160 million to keep an option there in case his
Herald floundered (which it did) and he needed a money-maker.
Not wanting to run too far off-topic here. If anyone wants to continue this
dialogue off-list, I'd be interested.
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