Skip to main content

Old Media Shudder at Knight Ridder's Demise

Associated Press writer Michael Liedtke reports that it should have been an idyllic setting when a clique of media and technology tycoons convened for an annual retreat amid the summer splendor of Idaho's mountains.

But the facade of tranquility did little to conceal the friction bristling beneath the surface of the five-day summit. The host, investment banker Herb Allen, had compiled a guest list that consists mostly of executives trying to protect their own turf while they invade new markets to reach increasingly fragmented and fickle audiences.

This high-stakes battle pits long-entrenched media like newspapers, broadcasters, movie studios and recording labels against high-tech trailblazers using the Internet to redirect the flow of information, entertainment and, ultimately, money.

Even losing early rounds in the fight can be fatal, as the recent demise of Knight Ridder Inc. demonstrated. The nation's second-largest newspaper publisher was sold to McClatchy Co. after the company's biggest shareholders expressed doubts about Knight Ridder's ability to compete as more advertising shifts to the Web. "I wish we had invented Google," a despondent CEO Tony Ridder said the day before Knight Ridder faded into obsolescence.

Popular posts from this blog

The Billions Bet on Tentative AI Demand

Gartner's latest worldwide IT spending forecast exposes a trend every CIO has already felt in budget negotiations. Total spending will climb 14.2 percent in 2026, reaching $6.37 trillion. It seems that the IT infrastructure market is simply having a strong year. However, the more useful insight is how unevenly that growth is distributed. The Headline Number vs. The Real Story Data center systems and infrastructure as a service (IaaS) are absorbing capital at a pace several multiples faster than devices, communications services, and traditional IT services. This is not incremental growth spread across a healthy portfolio. It is a wholesale reallocation of enterprise technology budgets toward AI infrastructure, made on the expectation that demand for AI workloads will justify the outlay before that demand has been fully proven. Where the Money is Going Data center systems are forecast to grow 62.5 percent in 2026, that's up from 51.6 percent growth in 2025, reaching $822 billion....