So, Jack Welch Wants to Buy a Newspaper

So, Jack Welch wants to buy a newspaper. That's the word coming out of Boston this week. Welch is at an age (70) where I'm sure he has a love for this old media. At 44 I still love print publications. But I believe he is not making a very good entrepreneurial decision. The Boston Globe, owned by the New York Times has a projected value of between $500 and $600 million, yet it sold for over $1 billion in 1993 (ironically, the year many believe the Internet obtained its market relevance). With its continued decline, it seems ironic that someone like Welch would be interested. Even more interesting is that his partner, advertising executive Jack Connors, would be involved in such a project. Few understand the devastating impact the Internet has had on newspapers than someone in the advertising field.

So why get involved in such a project? In spite of the fact I believe print is largely dead, I would love to own a newspaper or magazine. I wouldn't be surprised if someone like Welch would have the same passion. Also, Welch is among many executives who has disliked the treatment that business has received from newspapers. This could be seen as an opportunity to create more balance. It could be that he actually believes that his ability to turn GE around (a struggling company when he took the reins) could transcend to a newspaper. Whatever the reason, I believe he will likely find the result less than satisfying. For $500 to $600 million, Welch and company could develop a website that will further contribute to the transformation of media through the web and he would likely have a national (or international) presence for that kind of money.

If there is anyone who could help turn a faltering business around, it is Welch. His likely failure in a project such as this will only further demonstrate the continued decline of print media.