Little relief in sight for newspapers: Quadrangle

Newspaper company valuations will remain depressed until the industry figures out how to connect with younger readers, private equity firm Quadrangle Capital Partners said on Wednesday. Finding that new model, which is heavily dependent on the Internet and other electronic technologies, is crucial for publishers who want to remain relevant to younger readers, said Joshua Steiner, Quadrangle managing principal, at the Reuters Hedge Funds and Private Equity Summit. Absent the discovery of a successful business model that will sustain the strong cash flow papers still produce, publishers will have to rely on cost cuts and consolidation, he said. With no end in sight to that trend, investors in the business will steer clear until valuations fall further.
http://www.reuters.com/article/technologyNews/idUSN0937944720080409