Conrad Black Case Summary
Fast forwarding to 1997 Conrad Black started to turn in a new direction for success when he decided to start moving ownership of his newspaper assets into the United States so he could receive greater profit for the same assets. Conrad Black’s assets included Hollinger's interest in Southam and the Sterling Newspapers Company, which owned 26 daily and 49 non-daily newspapers in Canada. Sadly Black’s plan did not go as expected and in less than 1 year his stock fell to about $9.00 before closing when it had been at a high of about $13.13 the previous year. This being said according to Hollinger International Inc. History, “One analyst explained that the company's complex transactions of 1996 and early 1997 turned off a lot of investors, who
wanted companies that were easy to follow. John Reidy of Smith Barney Inc. told the Financial Post, "They don't want to talk about EBITDA (earnings before interest, taxes, depreciation, and amortization) or cash flow. Hollinger is an EBITDA and cash flow story, rather than an earnings story." Reidy admitted that Hollinger had a complex capital structure and that the company went through a radical transition in 1996, referring to taking The Telegraph Group private, Hollinger International's IPO, the sale of its interest in Fairfax, and the transfer of assets from its Canadian parent in early 1997.” This setback did not stop Conrad Black in the late 90’s Hollinger International owned or had an interest in 167 paid daily newspapers and owned or had an interest in 361 non-daily newspapers as well as other magazines and publications as well. (Hollinger International Inc. History)
wanted companies that were easy to follow. John Reidy of Smith Barney Inc. told the Financial Post, "They don't want to talk about EBITDA (earnings before interest, taxes, depreciation, and amortization) or cash flow. Hollinger is an EBITDA and cash flow story, rather than an earnings story." Reidy admitted that Hollinger had a complex capital structure and that the company went through a radical transition in 1996, referring to taking The Telegraph Group private, Hollinger International's IPO, the sale of its interest in Fairfax, and the transfer of assets from its Canadian parent in early 1997.” This setback did not stop Conrad Black in the late 90’s Hollinger International owned or had an interest in 167 paid daily newspapers and owned or had an interest in 361 non-daily newspapers as well as other magazines and publications as well. (Hollinger International Inc. History)