Daily Journal Corporation is a publisher of several small specialty newspapers and information services primarily serving the legal and real estate communities in California and Arizona. With the company’s traditional business experiencing a steady secular decline in recent years, management
Over the past few years, many obituaries of the newspaper business have been written. The growing tsunami of instant information combined with increasing accessibility to this information has shaken the comfortable “moat-like” business model of newspapers to the core. Few other case studies better define Joseph Schumpeter’s concept of “creative destruction”. Can Steve Jobs’ iPad save the industry?
As investors, most of us rely heavily on professional journalists who are paid to uncover breaking stories on the economy and individual companies. In addition to reading direct sources of information on companies, access to quality journalism can often influence investment decisions. From a broader standpoint, high quality journalism is also necessary for maintenance of a free society.
The question of when “news syndication” becomes outright theft will be a defining issue of the next decade and will determine whether a viable economic model exists for professional journalism. Read this article for more details.
Ken Auletta is apparently a brave author given his willingness to write about a story where the ending is still very much unfinished in Googled: The End of the World as We Know It. Mr. Auletta provides a great deal of insight regarding Larry Page and Sergey Brin, Google’s founders, along with a good description of Google’s meteoric rise over the past decade. However, the more interesting aspect of the narrative involves the insights provided by Mr. Auletta and many technology leaders who are quoted extensively throughout the book. Read this article for more details.
Barron’s published an interesting article this weekend by Jonathan A. Knee, director of the Media Program at Columbia Business School and co-author of The Curse of the Mogul. (Note: Mr. Knee’s co-author for the book is Bruce Greenwald who has been discussed in the past.) Mr. Knee’s article pertains directly to an topic that appeared here in May regarding newspapers and “creative destruction”. Read this article for more details.