SF Chronicle for sale (could shut down for good)

[thatsrightimirish]

From Sfist: http://sfist.com/2009/02/24/sf_chronicle_for_sale.php#comments
"Memo from Frank Vega, Chairman & Publisher
February 24, 2009


Dear Fellow Employees:

The rapidly declining economy, coupled with severely declining advertising revenues, is forcing nearly every newspaper company to re-think how it conducts business while continuing to serve its respective communities.

Despite all of our best efforts as an organization, The Chronicle continues to show staggering losses each week. Recent staff and expense reductions have not stemmed these losses, which are only worsening in the present economy. In response to our financial picture and the bleak economic forecast for the foreseeable future, our management team has begun a series of cost-saving initiatives designed to alleviate those losses.

First and foremost of these cost savings will be a significant reduction in force across all areas of our operation affecting both represented and non-represented employees. We will shortly begin discussions with union leadership on proposals. Our current situation dictates that we accomplish these cost savings quickly. Business as usual is no longer an option.

If we are unable to accomplish these reductions in the immediate future, Hearst Corporation, which owns The Chronicle, has informed us that it will offer the newspaper for sale or close it altogether. We know these are painful times for everyone and we face difficult choices. We share in the sincere hope that we will reach agreement with all parties involved on the concessions needed to continue to operate and provide the Bay Area with a quality newspaper.

I will update you throughout this process. Thank you for your support and good work, particularly in economic times that are difficult for all of us."

I shudder the thought of the Examiner being the only newspaper in San Francisco. I hope someone buys it but that's not looking too good.

Here is a link from the Chronicle. The Hearst Corporation is basically going after the union.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/24/BUannounce.DTL

[EFerrari]

1. I wonder how many subscriptions would help this.

Or, if any amount could. :(

[FreeState]

2. I dont know... I read their website every day - maybe I need to order a print version

but would rather not (environmental reasons). Its one of the best papers in CA IMO.

[EFerrari]

3. I quit them when their editorial page led the way on smearing Kevin Shelley.

But, I've reporter friends there and what will we do without Jon Carroll?!

[rvablue]

5. Just a thought on your comment

if you've got the financial means to buy a subscription but don't like the paper for environmental reasons, how about just buying a subscription but declining the hard copy. I offered this suggestion, because keep in mind: if there's no hard copy, there's no website.

Hope this came out the right way. I intended no snark whatsoever...just a suggestion.

I used to live in those parts and this news came as a real shocker....the American newspaper will be dead within 5-10 years. So sad. :cry:

[FreeState]

7. Thanks for the suggestion... I might just do that!

While I never agree with any paper 100% I dont want to see this one go!

I know - before we know it papers will be a thing of the past... it will be a sad day for sure.

[KharmaTrain]

15. Nope...That Just Covers The Cost Of The Paper

Advertising is a paper's bread and butter and that well has gone dry. Ironic as for decades papers like the Chronicle were looked at as recession proof...strong enough to weather any economic downturn, but we've entered a new era.

The electronic media has eroded print's role as the top dog in the advertising world and add to that the major downturn in those ad dollars with no end in sight and the future doesn't look good.

I don't see this as union busting as much as an honest appraisal of the situation. With no credit around, its doubtful there's any buyers out there, and I have a strong feeling the Chronicle will join a long list of papers that will either go under or declare Chapter 11 in the months ahead. And it's not just newspapers...I'm watching broadcasting stocks...look for several radio companies to go under real soon as well.

[EFerrari]

21. This is getting to be like a Saturday afternoon rerun of "Weeds".

:(

[Cleita]

4. Say it isn't so. When the LA Times got swallowed up a RW

company, I have come to rely on the Chronicle for my news.

[EFerrari]

9. The whole business model was already teetering on the edge

and the Chron was in dire straits three years ago.

Oh, geeze. :(

[KharmaTrain]

16. But It's Like A Mighty Oak Falling...

The writing has been on the wall for print since the Internet came along and many still haven't figured a way to make the same kind of money with their online editions as they did with the dead trees. They've lost people under the age of 35 and add to this the total implosion of advertising revenues over the past six months and the dire straits of several years ago look ducky in comparison.

:hi:

[EFerrari]

17. Tell me about it.

I was angling for a little column when the first axe came down in 2005 or so. There's a lot of ways to keep the kids. The whole structure is much more difficult.

Damn.

[KharmaTrain]

18. The Same Problem In Radio x 10...

I've been watching that go through a slow, debt-ridden death. Dare I say there's a big part of me that smirks as I predicted the financial games the corporates were playing just defied the laws of fiscal gravity. They were valuing their properties as 12 times annual cash-flow (at one time it was 3 times) to inflate "property values" that they used to justify inflated stock prices...and that's where the real money was made. Once the deck of cards were pulled away, the whole structure has quickly imploded and with it will go thousands of jobs.

I'm grateful I never got involved in any of the "deals" people pitched me on several years ago. I was told these deals were "sure things" and I was a fool for walking away. Now whose the fool?

Just think of it this way...once the debris settles, they're gonna need folks like you to help pick up the pieces.

[EFerrari]

19. I think we're all going to have to go very local to make anything sustainable.

Imho, that's what this collapse is going to mean. Papers, stations, retail, everything. It's hard to start thinking "local" after thinking "big" or in terms of the broadest distribution for most of the last 30 years. :crazy:

[KharmaTrain]

23. I'm Looking Forward To It...

I used to live local...it wasn't such a bad thing. For one who was around 30 years ago, I know many who've been sitting on the sidelines waiting for these shoes to drop. We've been trickled down long enough, time to show what growing from the grassroots truly means.

Cheers...

[MorningGlow]

6. Unreal

And put my Mark Morford fix in jeopardy?! BLASPHEMY!

[Phoebe Loosinhouse]

8. The employees should buy it. nt

[rvablue]

11. Reporter, copy editor and graphic design salaries don't go that far as it is in

the second most expensive city in the U.S.

I'm sure they'd love to, but they'd need to get an investor anyway.

I hope this news will spur the locals on to buy subscriptions. I would like to think that the idea of SF without the Chron will be unacceptable to it's citizens.

[Xithras]

10. I REALLY wish that papers would go back to evening editions.

When I pick up a paper, I'm reading yesterdays news. That's why I don't have a newspaper subscription anymore (well, that and the fact that I'm broke).

It seems to be that most people would rather come home, open their paper, and read about all of the interesting things that happened TODAY, instead of waiting until the next morning when it's all yesterdays news. Besides, with the reality of the modern commuting culture, who has time to read a paper in the morning anymore?

There are still a few papers in the country that publish evening editions, but they're rare. I'd love to see one of the papers experiment with shifting their primary printing time to evenings and see if that helped circulation.

[Book Lover]

12. Union-busting saber-rattling

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/02/03/MNP415LLR3.DTL

They just redesigned the paper and have invested in printing equipment. But only a few weeks later they think they're going to sell? I'm not buying it.

[EFerrari]

14. They're closer than you may think. Remember three years ago

they laid off a bunch of people and stopped buying anything?

Yes, they're used to a big margin. But, this is probably for real.

[omega minimo]

13. What will Northern California read?

:cry:

[mulsh]

20. Our current situation dictates that we accomplish these cost savings quickly.

guess those guys with the MBA's just couldn't foresee this situation. strange that the redesign and new equipment prevented upper management from recognizing a serious financial problem

I bet more union jobs get the ax than non union jobs. the reason we ended our nearly 30 year subscription was mostly due to the truly shitty political reporting.

[EFerrari]

22. The Chronicle's political reporting was sort of split into local and national.

National, they were on the liberal side. Local, they weren't.

[rvablue]

24. Kicking this for those who didn't see it yesterday! n/t