People play shoot the messenger while I try to document the demise of heritage media. So let me put a target HERE on Vex News for you to aim at:
The company was forced to slash $447.5 million from its balance sheet valuations of the businesses they own, including dubiously over-valued assets like The Age’s masthead.
“They’ve borrowed many millions on The Age and (Sydney Morning) Herald’s mastheads, which we doubt they could get anything much for in a firesale. The situation is really quite desperate for them,” one industry observer said. “The assumptions underlying loans to Fairfax depend on classifieds revenue and that it is dying in real estate, autos and even employment, so how much longer can the company survive?”
The write-downs of asset valuations make for big headline numbers but of themselves don’t make a big direct impact on the business (at least until it comes time to refinance).
Pick on Landeryou on Twitter.