Obama’s Coming New York Times Bailout

The New York Times has been experiencing a consistent loss in readership and advertising revenues. With its first quarter loss of $74.5 million, the Times is teetering on the edge of failure.

The Times has $1.3 billion debt and unfunded pension liabilities of $625 million. Given its “free” cash position of $34 million (this subtracts the $260 million set aside to retire 2010 debt that comes due), it doesn’t appear that the Times has much of a future. Could be just a matter of months.

Looks like a time for an Obama bailout.

The New York Times gives Obama a daily massage and pep talk. There is no organization that is more solidly in his camp. There is no organization (except for MoveOn.org) with as much influence. There is no organization that colors his mistakes and hides his flaws with a daily air brush. Obama needs the New York Times like the military needs enemies. They are joined at the hip and feed off the same foods.

Look for the administration to begin a “Save the Gray Lady” campaign any day now.


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