Media

Reader's Digest Bankruptcy: The Latest Print Media Woe

Print journalism had a bad few days. The Reader’s Digest filed for Chapter 11 for the second time in three years, with $1.1 billion in assets and $1.2 billion in liabilities. The transaction will buy the publisher time and decrease debt service, but that is about all. The magazine’s many editions are read by the old and undereducated. Its Internet presence is inadequate to offset tumbling print sales, which have done so much damage to so many publications that were once the core of a booming industry.

The news comes just days after rumors that Time Warner Inc. (NYSE: TWX) will sell most of its publications into a venture with publisher Meredith. Time Inc. may keep Fortune, Sports Illustrated and Time. These three may be handed to media veteran Jeff Zucker, who is the new head of CNN. CNN Money is already the portal for Fortune and Money. And Sports Illustrated has relied on CNN for traffic as well, although that prized position recently was taken by the Bleacher Report.

For the sector to be completely transformed, all that is left is for Mexican billionaire Carlos Slim, who loaned money to the New York Times Co. (NYSE: NYT) several years ago (and was paid back) to buy the ancient newspaper. Another American industry will have been destroyed.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.