Pink's Bottom Line on Media, Money and Sports
A possible newspaper deal, existing home sales and Super Bowl favorites
In today’s newsletter, I discuss a possible newspaper deal, existing home sales and Super Bowl favorites.
MEDIA: Possible Newspaper Deal
Newspapers have struggled mightily in the digital age, which has sparked a wave of consolidation in the newspaper business in the past few years.
Today, Alden Global Capital, a hedge fund that owns many newspapers around the country including high-profile publications including The Chicago Tribune and The Baltimore Sun, said it is making a takeover bid for Lee Enterprises, a large newspaper chain.
Lee Enterprises owns 90 daily newspapers including the St. Louis Post-Dispatch and The Buffalo News.
Pink's Bottom LineIf that bid is successful, Alden, which already is the second biggest owner of newspapers in the United States, is poised to become an even bigger player in the industry.
However, there is wariness surrounding a suitor like Alden, which has a reputation for significant cost cutting at its publications.
Consolidation, though, is likely the most viable long-term path of survival for the newspaper industry, but that survival might come, unfortunately, together with more cost cutting measures.
MONEY: Existing Home Sales
Sales of existing homes rose in October, according to a report released earlier today from the National Association of Realtors (NAR).
Pink's Bottom LineThe housing market, a stalwart of the economy during the pandemic, is showing resiliency as existing home sales remained strong despite a tight inventory and those higher prices.
However, if mortgage rates, which are hovering at historically low levels, rise and if inventory builds, both sales and prices of existing homes could quickly come under pressure.
SPORTS: Familiar Super Bowl Favorites
Following another weekend of upsets in the NFL, two familiar teams and last year’s Super Bowl participants — the Tampa Bay Buccaneers and the Kansas City Chiefs — have emerged as favorites to win the Super Bowl this year.
Pink's Bottom LineThe Chiefs are currently on a four-game winning streak where they have won primarily with defense, with only one strong offensive performance during that streak.
The Bucs, meanwhile, are on a two-game losing streak heading in to tonight’s game against the New York Giants, and Tampa also looks in disarray on offense.
As such, while the two teams are currently the Super Bowl favorites, each looks vulnerable, which suggests that a Super Bowl rematch probably isn’t in the cards.
Jeremy Pink is currently an advisor to media and fintech companies around the world. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)