Our Core Business is in Eroding Value
Tribune today announced that it may seek the sale of certain non-core assets to concentrate on its core business.
One of those assets under consideration is its 33% stake in Careerbuilder.com. What a bone headed idea! Sell off the one business that has been doing amazingly well in recent times and has the opportunity to drive a huge part of their earnings growth in the coming years while holding on to flat revenue growth and double digit cost growth newspapers.
Tribune also said they didn’t want to sell the LA Times. Maybe that’s because no one would buy it?
Niki, whats interesting is that Careerbuilder is divesting themselves of properties and projects that are no part of their core business too. Seems to a philosophy that is cycling down. They went on some tangents last couple years (education, certification, etc..) i.e. findtutition.com and sologig.com and scaling those back while still pulling in revenue from affiliate relationships that the traffic can generate.
[…] So what do the newspapers try to do with this wildly successful beast? Well one part owner wants to sell it. Great jobs guys! Shit. I promised myself I was going to be nice to the newspaper industry in this post. […]
[…] Faithful readers know that I think Careerbuilder is one of the most valuable and fast-growing Internet assets; a kind-of Monster.com on steroids. I haven’t been kind to Tribune but this time they are smack on the money. […]