Microsoft’s chief ad strategist Mike Galgon (MSFT) was moderately bullish on newspapers this morning at the DeSilva+Phillips conference. Specifically, he said they were “not worth zero.” DoubleClick CEO David Rosenblatt, on the same panel, agreed.
Part of Mike’s thesis was the theory that paper-based newspapers will still be around in some form in 10 years. We agree with that (but we’re less optimistic about 20-30 years). We pressed Mike as to whether he believed even today’s 20-somethings would be reading newsprint in 10 years–or whether it would just be us Jurassic era 40- and 50-somethings. Mike was optimistic, even about the younger crowd.
We think Mike’s dreaming about the future newsprint habits of today’s Facebookers, but we certainly agree that newspapers aren’t worth “zero.” We don’t think they’re worth as much as public market investors are still paying for them, however. And we still think they’re in for some brutal, forced restructurings over the next few years.
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