Economy hurts even the big boys of media

By Peter Merchlewitz

The recent economic stutter is on everyone's minds these days. Can I afford to go back to school? Can our family make the annual holiday vacations to distant relatives? The list goes on and on.

One would be surprised to find that this crisis doesn't affect just us mere mortals, trying to get by, day to day. According to The Editors Weblog, it appears that even media giants such as The New York times are quickly trying to figure out what cuts they can make to meet their ends meet before the Repo Man comes knocking at their door.

The bottom line for the short-term financial picture for the Times is that it owes $453 million more than it has.

Blodget reports, based on recent NYTCo. filings with the Securities and Exchange Commission:

What NYT has:
• $46 million of cash
• $366 million owed to it by advertisers
Total: $412 million

What NYT owes:
• $398 million of short-term debt (due in May)
• $161 million of accounts payable (newsprint, travel, etc.)
• $100 million of payroll (salaries)
• $159 million of other expenses
• $50 million owed on long-term debt and rent
Total: $865 million

So the question is, what can the NYT do to cut costs and remain afloat? Will cutting jobs be enough? Will they need to end print editions?

Whatever they decide to do, they'll need to find a solution that both allows them to maintain their status and have the resources to provide quality news coverage before it's too late.