Does this mean Gannett is going private?

A reader e-mailed that timely question to me last night after reading my post about Brandes Investment Partners' boosting its stake in Gannett. My answer: I dunno. Certainly, Brandes' interest could spur GCI's management to take the company out of the public's hands if the board of directors can arrange financing -- a dubious prospect for the reasons I cited in this post.

"Going private" means swapping one big group of investors -- pension funds, employees, other members of the public -- for a smaller set of investors. Shares would no longer trade on public stock exchanges, relieving management of Wall Street pressure to raise profits each and every quarter. For example, Chicago real estate developer Sam Zell (left) is leading a private buyout of the Tribune Co., owner of the Los Angeles Times, Chicago Tribune and other properties. (And that $8.2 billion deal is in danger of collapse, the rival Chicago Sun-Times reported this morning.)

But investment companies like Brandes, and investors like Zell, still want to make a buck. So, going private only replaces one set of near-term pressure for another set of somewhat longer-term pressure. Management might get a little more flexibility, and time, to try turning the company around. But it won't get forever.

[Photo: Bloomberg News]