Gannett to write down assets
By Liam Berkowitz, Tuesday 10 June 2008 at 17:25 :: General :: #1760 :: rss
Gannett Co., publisher of USA Today, will write down its assets by approximately US$2.5 billion to $3 billion, the Associated Press reported Monday.
Gannett Chief Financial Officer Gracia Martore attributed the writedown to the company’s lagging UK operation, Newsquest. She also blamed the struggling economy, specifically the real-estate market, for weakening the advertising environment.
Gannett’s stock suffered a hit yesterday as well, with shares falling by 1.1 percent to $27.45 a share.
In spite of Gannett’s struggles, Craig Dubow, chairman and chief executive, remains optimistic. Dubow said that the company is in the midst of a transition, and that its “strengths are getting undervalued way too much,” the AP reported.
The writedown, Martore said, will not affect daily business operations, and is primarily an accounting issue.
Gannett is the largest newspaper chain in the United States.
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