Saving the Merc (KRI, MNI)

by: The Stalwart posted on: March 21, 2006 | about stocks: KRI / MNI

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The Stalwart submits: One of the more surprising things to come out of the KnightRidder (KRI) -McClatchey (MNI) buyout was that the San Jose Mercury News would be among the 12 fishwraps not to fall into McClatchey's warm embrace. It will be sold off, possibly to some rapacious bean counter that will fire everyone except the interns.

It's strange cause The Merc always seemed like a pretty important paper, one of the best on technology. But really, that was just my impression -- it's not clear that it was all that good. Any Merc readers are asked to chime in here.

So of course, because it's a newspaper, people are having a fit. They've put a website called Save The Merc. Former Merc writer-cum-new media visionary Dan Gillmor is sounding the alarm bells, and even pushing for Yahoo! to buy the paper out. He's even scolding tech executives for not already having come to the paper's rescue because it's not like there isn't much tech news out there... right.

It's funny that Gillmor, who left the paper because he knew that print papers might go extinct is now arguing that everyone else must stay with the sinking ship. So it's ok for top-flight writers to leave, but not the owners? Hmm...

The fact is is that the paper is an underperformer. Admonishing executives for not wanting to hold the bag is really just telling shareholders that they'll have to settle, that they're not entitled to put their money elsewhere, where they might expect a better return. Sounds like nonsense from here.

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