Wall Street hasn't given up on pushing Corporate to spin off the flagging newspaper division, pressure that's been building especially since the takeover of TV company Belo. Here's one such exchange from this morning's fourth-quarter earnings teleconference with stock analysts, according to Seeking Alpha's transcript. As she has in the past, CEO Gracia Martore leaves herself plenty of wiggle room.
James Goss of Barrington Research: Why doesn't Gannett split up the company like everybody else is doing?
Martore: I think the most important thing that the Gannett can do right at this moment is to achieve all of the great synergies and all of the great things we believe we're going to achieve and we've set out that we're going to achieve from our combined Broadcasting group, not only for 2014 but to set the stage for all of that to occur over the next three years. So that has a lot of our time, focus and energy right now.
But at the same time, I will tell you that the board of directors and I are continuously evaluating, as you would expect, everything -- a lot of different ways for us to have consistent increases in shareholder value. We evaluate everything from capital allocation decisions to the appropriate structure for our businesses and our company and everything in between.
But I think, Jim, right at this moment in time, just literally having completed the Belo acquisition, in the short term our time, energy and focus is to create the substantial -- substantially more shareholder value we believe we're going to achieve with the successful and I believe overly successful achievement of everything we promised around the Belo transaction.
James Goss of Barrington Research: Why doesn't Gannett split up the company like everybody else is doing?
Martore: I think the most important thing that the Gannett can do right at this moment is to achieve all of the great synergies and all of the great things we believe we're going to achieve and we've set out that we're going to achieve from our combined Broadcasting group, not only for 2014 but to set the stage for all of that to occur over the next three years. So that has a lot of our time, focus and energy right now.
But at the same time, I will tell you that the board of directors and I are continuously evaluating, as you would expect, everything -- a lot of different ways for us to have consistent increases in shareholder value. We evaluate everything from capital allocation decisions to the appropriate structure for our businesses and our company and everything in between.
But I think, Jim, right at this moment in time, just literally having completed the Belo acquisition, in the short term our time, energy and focus is to create the substantial -- substantially more shareholder value we believe we're going to achieve with the successful and I believe overly successful achievement of everything we promised around the Belo transaction.
Why do analysts always think breaking up a company is better? Because that's how their paymasters -- the investment bankers -- make their obscene fees
ReplyDeleteGracia really does deserve the gold in doublespeak. Even after reading her answer a few times over, I still can't pin anything down in there, other than a complete non-answer. Yep, plenty of wiggle room. Thanks for the decisive leadership and direction, Gracia.
ReplyDeleteWorth noting that for all of the cuts Gannett has made in print: closing down entire newsroom wings and eviscerating staff, and substituting jittery iPhone video for reporters with decades of insight and experience, the price of the paper only keeps going up. Seems to be a clear case of paying more for demonstrably less.
ReplyDeleteExactly. I go to a newspaper site for professionally written news by people who know their community, not sophormic videos and gimmicks.
DeleteAnd yet you write "sophormic."
DeleteTranslation: as I'm literally speaking these words to you, we have no plans to break-up the company. But, that could all change. Perhaps by lunch.
ReplyDeleteMartore's reference to the next three years is interesting because that timeline corresponds with her reaching mandatory retirement age, 65, which she hits in September 2016.
ReplyDeleteThat's 'capital allocation strategies' at work, creating real-time synergies with executive monetary packaging and the vacation services industry in both established and emerging markets. Quackquack.
DeleteVery interesting indeed.
Lost me at 'synergies'. As soon as they go into duck-speak mode, my eyes glaze over and everything takes on that soap-opera dream sequence haziness. Capital allocation decisions? Who talks like that? Isn't that duck-speak for firing or laying off as many people as possible, compiling long-term numbers as if you created a savings to the company and then pocketing a bonus based on that faulty logic?
ReplyDeleteInstead of using corporate duck-speak, I prefer pirate-speak.
Aarrr… all me duty to you, Cap'n, but belay yer carousin', and come about smartly, ye scallywag. But a fine gentle-lady of fortune be ye, yer a scurvy bilge rat stem to stern.
No one here should ever refer to duckspeak. This place consists almost entirely of people quacking about things that they know nothing about.
ReplyDeleteI've said it before....I'll say it again. Gracia does NOT want the break-up of Gannett to be her swan song before retirement. She'll leave that to the next sucker. She wants to go out with another Belo-type victory. Can't say that I blame her.
ReplyDeleteGracia was particularly crass and nasty at this week's town hall meeting. If anyone doubts it, check out the video of her performance. She was so bombastic and loud no one in the audience was brave enough to ask a question. The message, if you read between the lines, is more change is coming. Like job cuts in publishing and at GPS.
ReplyDelete