Wednesday, October 10, 2007
Canadian Magazines Blog
News, views and reviews of the Canadian magazine industry.
Google's valuation: is this the new reality?
That whooshing you heard was the cold chill running down the necks of traditional publishers, as Google's stock market value surpassed that of the Big 3 traditional media companies. A story in MediaDaily News says:
If there were any doubts that we were back into a new, digital media economy, they were laid to rest Monday when the price of Google's shares topped $600 for the first time, giving it a price to earnings multiple of 49.54, and a market capitalization greater than the three biggest traditional media companies - Time Warner, Walt Disney Co., and News Corp. - combined.
In fact, Google's value is 3.6 times that of all the publicly traded ad agencies on Wall Street.
The relative valuations of the new and traditional media companies are more than just symbolic. They signal investor confidence that allow companies to leverage their share value in stock-based acquisitions that can help companies grow even bigger and more dominant over time. And if Google's high price/earnings multiple seems bubblish, it wasn't apparent to experts on Wall Street.
I cut down trees, I love my job...
From the other end of the magazine supply chain comes news that the guys who cut down the trees love their jobs.
Canadian Forest Industries magazine is a trade title that serves the logging industry coast to coast and its website gives an advanced peek at a survey of loggers that will be published in its Nov/Dec issue.
1,500 loggers were questioned by PREfoRT, an industry consortium of forest industry players, from mills and gear suppliers to bankers and insurers, and a couple of things emerged:
Loggers are unbelievably satisfied with their choice of profession, despite tough times. The majority may not be willing to hand the business over to the next generation, but when it comes to their daily job, satisfaction levels are in the high 90s. They love being challenged, they love the independence, machinery, working as part of a team, etc... As Luc LeBel of PREfoRT says , "they love everything about logging."
Almost 60% of spouses do the books or more for the [logging] contractors. Aside from subsidizing the business, this also means spouses are often key players when it comes to tracking costs and returns, and should be involved in any attempts to improve overall business management or performance.
CFI, published by Annex Printing and Publishing Inc. and based in Baie d'Urfe, Quebec, started out 127 years ago as Canada Lumberman and now, with its French language counterpart,Opérations Forestières reaches over 18,000 logging contractors, logging companies and individuals involved in the day-to-day business of logging.