It seems a new generation of moguls has its eyes on newspapers. The latest mogul to consider a newspaper purchase is Maurice "Hank" Greenberg, the former chairman of insurer American International Group.
Greenberg joins a growing field that already includes financier Ron Burkle, Hollywood mogul David Geffen, and former General Electric Co. CEO Jack Welch. As a matter of fact, Greenberg may find himself bidding against some of these men depending upon which newspaper or chain he seeks to acquire. He's reportedly interested in the entire Tribune Co., publisher of the Chicago Tribune, Los Angeles Times and other daily papers. However, Burkle has already made a surprise bid for the entire company rather than just the Los Angeles Times. Meanwhile, Geffen covets only the Los Angeles Times. In addition, some report that if Greenberg fails to win Tribune, then he'll turn his attention to the Boston Globe, the newspaper that Welch desires.
For the ultra wealthy it seems as if newspapers are becoming a hot alternative vanity purchase to sports teams. After all, there are some similarities between newspapers and professional athletics. For starters, both are perennial money losers. Both involve dealing with a fickle public and outspoken critics. In the case of sports, it maybe easier to ignore the critics, who have little ability to affect the business. However, media critics, who come in many forms, can be a dangerous lot especially if the critics are elected officials who can make laws that affect the industry. Maybe that explains why Charles Foster Kane went into politics. —Matthew Wurtzel
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