The Finch Formerly Known As Gold

17 April 2007

And still there are the same two

Sometimes the other shoe drops slowly.

In September 2003, I wrote about yet another wrinkle in the weirdly-unfolding history of joint operation between the Seattle Times and the rival Seattle Post-Intelligencer: at that time, a judge blocked an attempt by the Times to in effect force foreclosure on the P-I.

Under an agreement reached Monday, the Times has agreed to refrain from invoking the Joint Operating Agreement's escape clause until at least 2016 and will pay Hearst, owner of the P-I, $24 million. In return, Hearst gives up the right to a cut of the Times' profits should the P-I go under, and gets some concessions to boost P-I circulation. The core of the JOA, in which the Times handles the business and circulation operations for both papers and gets a 60-percent cut of the post-production revenues, remains unchanged.

Currently the Times sells about 212,000 copies daily, the P-I 126,000.

(Via Sound Politics.)

Posted at 6:55 AM to Dyssynergy

As overall circulation continues to drop, I think we're going to see a lot of JOAs being "aggressively renegotiated" by the more powerful participant, and a lot of them are going to fall apart as a result.

Posted by: McGehee at 10:21 AM on 17 April 2007