Media General Cuts Workforce By Nearly 11 Percent; Online Rev Up 15.5 Percent But Not Enough
By the beginning of Q3, Media General (NYSE: MEG) says it will have dropped the equivalent of 750 full-time jobs from its payroll—saving an estimated $40 million—and added 60 in interactive. At the same time, the company, under fire by activist shareholder Harbinger, said revenues in its interactive division rose 15.5 percent as overall revenue dropped 10.9 percent. Online growth stemmed from higher local ad spending —up 42 percent—and revenues generated during the first month of the Richmond, VA-based company’s ownership of DealTaker.com. Not all was well in that segment: online national/regional ad revs fell 23 percent and its advergaming business dropped as well. Release
—Yahoo (NSDQ: YHOO) Newspaper Consortium: “A year-over-year increase in revenues from the company’s Yahoo!HotJobs partnership helped mitigate the classified revenue decline.”
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Comments (1)
May 23, 2008 8:55 AM
What Harbinger doesn’t understand is that Media General deson’t have a real online strategy that can create real shareholder value over the long term. They need radical change.