The Paper Chase

There were other contenders for the job, including NEWSWEEK editor Jon Meacham, Jonathan Landman at the New York Times and Washington Post columnist David Ignatius. Would Wall Street have preferred a different editor?
I don't think Wall Street gives a crap about who the editor of anything is anymore. They're not interested in the journalism. All they care about is the next quarter and if it's going to get better or worse.

The company's stock is down about 42 percent from its peak in 2004. What will drive a rebound? Or is one even possible?
First of all, they are down far less than most of their peers. Again, that's thanks to [educational services company] Kaplan [which is owned by the Washington Post Company]. As for a rebound, that's a big question mark. In past recessions, as in 2002, most newspapers recaptured what they lost. There was an Internet then, but it was not nearly as powerful a competitor as it has since become. That's why there's such a big question today. A recovery is conceivable, but the classified ad revenues newspapers relied upon are in a tailspin and much of [that money] will be lost forever.

Despite being named for its newspaper, the Washington Post Company these days describes itself as an education and media company—an acknowledgement of Kaplan's contribution to the bottom line. Do investors see the news division as a secondary component of the company?
It really has become an education company that just happens to own a newspaper and some small cable outlets. Investors in the long run will view the news divisions as a drag on the company's earnings. But because of the Graham family's devotion to the news division, I don't think that matters. In an effort to cut the drag on their performance, other publicly owned media companies like Scripps and Belo have spun off their news divisions. That's not likely to happen at the Post, which is still willing to spend more on its journalism. Fortunately for them, the company can afford to keep doing that thanks to Kaplan.

© 2008