By Ben Cohen
1. The Philadelphia Daily News.
The smaller of the two papers owned by Philadelphia Newspapers LLC,
which recently filed for bankruptcy. The company says it will make
money this year, but with newspaper advertising still falling sharply,
the city cannot support two papers, and the Daily News has a
daily circulation of only about 100,000. The tabloid has a small staff,
most of whom could probably stay on at Philly.com, the Web operation
for both of the city dailies.
2. The Minneapolis Star Tribune
has filed for Chapter 11. The paper may not make money this year, even
without the costs of debt coverage. The company said it made $26
million last year, about half of what it made in 2007. The odds are
that the Star Tribune will lose money this year if its ad
revenue drops another 20%. There is no point for creditors to keep the
paper open if it cannot generate cash. It could become an all-digital
property, as supporting a daily circulation of more than 300,000 is too
much of a burden. It could survive if its rival, the St. Paul Pioneer Press, folds. A grim race.