Bad News Sells

As was predicted, news outlet ratings have fallen, especially those that are anti-Trump. People want to see, hear, and read negative news. In the first month since the Inauguration:

  • CNN was off 45% (down 16% in prime time in Q1 2021)
  • MSNBC down 26% (down 8% in prime time in Q1 2021)
  • The Washington Post 26% fewer unique visitors
  • The NY Times was down 17%
  • Fox News was down 6% (down 32% in prime time in Q1 2021)

Say good or bad things about Trump, he was a boon to all media (and I’m guessing Fox News went down when Trump replaced Obama, for the same reasons).

Bad news sells. Look at the headlines. Recently it was headlines about how the ship stuck in the Suez Canal would take a month to be dislodged and by then the world economy would collapse. It was freed in six days. When it comes to news and day-to-day business here are some thoughts in three areas: 

  • When a business is for sale, there is no bad news. Everything is rosy, no warts, no issues, and a very bright future. Two percent growth the last five years, no matter, it will be 10-15% the next five years. Look, the previous is a bit of hyperbole but you get my point.
  • On the flip side, all businesses have something wrong with them and some buyers think it’s their job to ignore the profits and pick apart every little thing. These buyers rarely get a deal done because nothing is good enough.

And did you ever hear outsiders talk about what a company can do in three easy steps to be more productive and profitable? My favorite was hearing two government employees discuss what the $100 million dollar firm where one of their wives worked should be doing to be better. Really?

I tell my clients there are no perfect businesses and no perfect deals. But their business, or the one a buyer is acquiring, have figured out how to be successful and profitable. Perfection is for brain surgery. 

“All things are so very uncertain, and that’s exactly what makes me fell reassured. “ (Author) Tove Jansson

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