Except for improved color printing capacity, the changes should be invisible to readers and advertisers. The Times will continue to publish just as it does now, and the paper will be strengthened by the back-office efficiencies that are contemplated.
There is a strong perception that by not having exposure to the Internet, those prospects are vastly lower than they used to be.
Warner has to come to grips on its spending. They don't need all that to open a film when Wal-Mart is more important.
The current market prices indicate that investors believe that cash flows will be reinvested in a suboptimal manner. We continue to favor content over distribution, given the greater likelihood of restructurings and large returns of capital to shareholders.
