[Published in conjunction with the blog seanax.com]
You could say it came as a complete surprise when, on Thursday evening, local TV station KING-TV announced that, according to unnamed sources, the Seattle Post-Intelligencer would be put up for sale. The P-I staff had no news of it and the Hearst Corporation, which owns the P-I, would not comment. It could have been a rumor, a hoax or just an incorrect story. At least that’s what many of us hoped. It wasn’t until Friday afternoon that news was confirmed and the news made public.
But if the announcement was a surprise, the closing of a Seattle newspaper was hardly unanticipated. Traditional print newspapers have been on life support for years and Seattle was the last city of its size to still have two competing daily newspapers. Both the Seattle Time and the P-I have both been losing money. The two papers appeared to be attempting to outlast the other and be the last paper standing. While the locally-owned Times has a significantly larger circulation (198,741 to the P-I’s 117,572 as of September, 2008, according to a P-I report), it is also deeply in debt and its sale of a number of newspapers in Maine (which are being sold at a significant loss) is running into problems. Many thought that the more financially robust Hearst would be able to hold out longer in the face of losses.
The Hearst Corporation says that if the paper is not sold within 60 days, it will either be shut down or turned into a web-only publication with a greatly reduced staff. A sale in this climate seems unlikely, as the economic downturn has reduced advertising dollars even farther.