Yesterday, the Dow Jones-published Barron's suggested that Belo Corp. ought to bite the bullet and just separate its broadcast and newspaper divisions, echoing last week's advice from Citigroup analyst Eileen Furukawa. The way Barron's figures it in this subscription-only story, TV stocks are hot and newspapers are not, and if Belo were to bite the bullet and just do the smart, inevitable thing, it might see its shares jump by as much as 30 percent.
Belo's stock shot up last week, after Furukawa upgraded the stock from "hold" to "buy" and upped her share price target from $19 to $25 because of its good TV reception. The stock opens the week at $22.22 after hitting a 52-week high last Thursday of $22.94 -- a full eight bucks higher than where it sat as recently as September 11 of last year. Says Barron's: "TV stocks are back, partly because private-equity firms are paying top dollar for operators of stations that carry...network programming." Only problem is, says Barron's and anyone who knows Belo, the bigwigs and bosses on South Record have always said they don't want to split the biz. But for 30 percent mas, maybe...? --Robert Wilonsky
Keep the Dallas Observer Free... Since we started the Dallas Observer, it has been defined as the free, independent voice of Dallas, and we would like to keep it that way. Offering our readers free access to incisive coverage of local news, food and culture. Producing stories on everything from political scandals to the hottest new bands, with gutsy reporting, stylish writing, and staffers who've won everything from the Society of Professional Journalists' Sigma Delta Chi feature-writing award to the Casey Medal for Meritorious Journalism. But with local journalism's existence under siege and advertising revenue setbacks having a larger impact, it is important now more than ever for us to rally support behind funding our local journalism. You can help by participating in our "I Support" membership program, allowing us to keep covering Dallas with no paywalls.