Here Is A Novel Theory
DeCloet in the Globe: Apple, Microsoft, and Google carry nearly no debt. They need to regularly reinvent their products so they keep lots of cash on-hand. Old media companies that are burdened by debt don’t innovate and therefore are at risk in troubled times.
I don’t know if I buy that. It makes sense that high-debt bearing companies like Canwest, Tribune, and Houghton Mifflin would burn first in tough times, but an innovation-to-debt matrix for non-tough times is the only way you could substantiate that correlation. Is there anyway to realistically capture the comparative debt load of the big publishers? Anyone out there on the lazyweb know if debt is reported accurately in annual reports?
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