If this publishing thing doesn’t work out, newspapers may have a future in real estate.
The owner of the Los Angeles Times and Chicago Tribune said it wasn’t only buying the New York Daily News, but also a stake in a joint venture that will own a 25-acre (10-hectare) parcel of land on which its printing facility is located and which overlooks the Manhattan skyline.
It wasn’t enough that Tronc Inc. bought a storied New York City tabloid for just $1. A Tronc executive told the Chicago Tribune the land was “an added inducement to this transaction.” With print advertising in a downward spiral ever since the internet became a commercial force, newspapers have seen the value of their once-formidable brands dwindle.
In many recent newspaper deals, including this one, “it is the property that offers calculable value and drives the deal,” newspaper analyst Ken Doctor wrote on TheStreet.com.