Wednesday, May 15, 2019
SOLD!!! KANSAS CITY STAR PRINT PALACE AND OFFICES PURCHASED AT EPIC LOSS FOR LOCAL DEAD-TREE MEDIA!!!
The not-so-great Kansas City journalism sellout continues as The Star is once again forced to downsize.
Here's a portion of the quickie update on the fading fortunes of this institutions:
The agreement transfers ownership of the building to Ambassador Hospitality, LLC for a price of $30.1 million. The sale closed Wednesday.
McClatchy, on behalf of The Star as its parent company, is leasing the building back for 15 years with annual payments initially set at $2.8 million.
Star employees will continue to work in the building for the life of the lease.
That is, if they can keep paying rent.
A few facts to keep in mind that our GROWING COMMUNITY OF KICK-ASS TKC READERS TOUT . . .
- McClatchy reports a net loss of $42 million for the first three months of 2019.
- Internets won't save McClatchy: Digital-only advertising revenue was down — down by 5.2 percent against the first quarter of 2018.
- Total advertising revenue was $85.2 million, down 14.7% compared to the first quarter of 2018.
Moreover . . .
Despite a year of deals, discounts, layoffs and reorganization:
McCLATCHY STOCK BELOW TWO-FIDDY!!!
Turns out newspapers are a great place to make a small fortune if you start out with a large fortune.
Over the past full year, investors have seen an MNI loss amounting to -48.95%
Again and again, the newspaper thinks digital subscriptions might save them but with so many news options to choose from, it's unclear if waiting for a wordy and authoritative take from middle-class writers will interest many local news readers . . . Especially at the exorbitant costs they're touting.
Kansas City hasn't had a newspaper since 2004. Everything since that point has been prologue to an institution desperately clinging to fading influence and impact over local politics and culture.
You decide . . .