Cablevision Systems Corp. understands its market — what values are for broadcasting and disseminating the news, why people value the capability to do both, and how that value reflects a nice return on investment.
So, when Reuters reported that Cablevision was considering making a value-based bid on the beleaguered and barraged New York Daily News, investors and publishers alike took notice.
And then they probably shot coffee through their hairy nostrils because of laughter. Why? One dollar.
Cablevision’s $1 bid takes into account the New York Daily News‘ reported $30 million annual loss and $150 million investment in a printing press, and declining circulation that relies heavily on newsstand sales rather than on subscriptions, the source said.
In other words, the pub isn’t worth the paper it’s printed on.
According to Ken Doctor at Nieman Lab, the Daily News’ daily single-copy sales have declined from 290,000 in the fall of 2011 to 168,000 in the fall of 2014, a 42 percent decline over three years.
So the under-offer is to be expected — but a whole dollar? With a straight face?
Someone see if this isn’t an April Fools Joke. Surely even Reuters has a sense of humor.