More Hollinger Problems (Sun-Times lied re circ numbers)

[UpInArms]

http://www.cfra.com/headlines/index.asp?cat=3&nid=15966

The share value of Hollinger International has been decimated by news of another scandal at the newspaper empire.

The stock sank $1.72 in New York yesterday after the company revealed its second-largest newspaper had overstated its circulation for years.

A newspaper report says the Chicago Sun-Times inflated its circulation figures by more than 10 per cent.

...a bit more...

[ProfessorGAC]

1. It Was Way More Than 10%

The numbers provided in yesterday's Tribune (i bet they loved front paging this story, huh?) actually reported an overstatement of very near 70,000 out of about 470,000. More like 15%

The advertisers are not overreacting to this news here. Most are wanting some refund, rebate, or make-good, but are not blaming the current leadership of the SunTimes. I think they'll survive quite handily.

But, boy, this is another slab of evidence that Hollinger is run by some VERY slimy people. Illegal payments, illegal stock deals, illegal transfers of company property to execs, and now this! Sheesh!
The Professor

[John_H]

2. The Trib loved it for more than business reasons since they're a GOP paper

and the Sun-Times is a Dem paper.

[DulceDecorum]

3. The Sun-Times is a Dem paper????

You know Bob Novak the Wilson/Plame hit man?
Are you saying his home base is a Dem newspaper?
Heck I might just have to go take another look at where exactly that "democrat" Zell Miller
http://www.weeklystandard.com/Content/Public/Articles/000/000/003/309nqnas.asp
is stashing his cash thesedays.

In 1958, Novak left the AP for a position in the Washington Bureau of the Wall Street Journal as Senate correspondent and political reporter, becoming chief congressional correspondent for the Journal in 1961.
On May 15, 1963, Robert Novak teamed up with the late Rowland Evans, then congressional correspondent for the New York Herald Tribune, to write the political column "Inside Report." One of the longest-running syndicated columns in the nation, it is distributed by Creators Syndicate to more than 300 newspapers nationwide.
After 30 years on "Inside Report," on May 15, 1993, Rowland Evans retired from the column, which Novak is now writing three times a week.
"Inside Report" is noted for its rapidly moving dateline and its hard-hitting analysis of national and international developments. The Chicago Sun-Times has been the home newspaper to the column since 1966.
http://www.disinfopedia.org/wiki.phtml?title=Robert_Novak

[UpInArms]

4. related article: Hollinger's Fuzzy Math

http://www.fool.com/News/mft/2004/mft04061616.htm

It's been a few months now since long- suffering shareholders have had to endure any self-righteous contempt from Hollinger International's (NYSE: HLR) former czar, Conrad Black. After he was ousted from most of his positions of responsibility following investigations into multiple, questionable, and undisclosed compensation deals, The Washington Post Co.'s (NYSE: WPO) namesake newspaper reported on a directors' investigation that unearthed this beautiful example of Conradspeak.

We have said for some time that served no purpose as a listed company other than a relatively cheap use of other people's capital.... We think are a bunch of self-righteous hypocrites and ingrates who give us no credit.

This condescending gem -- which dazzled Bill Mann back in January -- bears repeating this week because news out of Chicago indicates that Hollinger management may have had an equally low opinion of its advertising customers.

Yesterday, Hollinger announced that its Windy City tabloid, the Chicago Sun-Times, had inflated circulation numbers. It did not disclose the magnitude of the problem or the nature of the scheme, but it did mention that the problem had been going on for years, putting it under the watch of former publisher David Radler.

What this means for the future is unclear. The 10% drop in the stock's price today may be only the beginning. Fudging your circulation numbers is a big no-no when you're selling ad space based on the number of readers you can deliver. It's also a sure way to spook the would-be buyers who might otherwise consider making an offer on London's Daily Telegraph or The Jerusalem Post.

...more...

priceless links embedded in this article :evilgrin:

[Moderator]

5. Duplicate

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=626442