Digest: Google adds ads
EmptyGoogle Inc. is expanding a test program that lets online advertisers buy advertising space in newspapers. The struggling publishing sector has seen the program, called Print Ads, as a chance to offset some of the ad dollars that have moved to the Internet. Google said it launched an initial test in November, connecting about 100 advertisers with 50 newspapers. Now, Google will open the program to the "hundreds of thousands" of U.S. advertisers and agencies that use its online ad platform, AdWords. Such newspaper publishers as Hearst Corp., the New York Times Co. and E.W. Scripps Co. have been involved in the test phase. Google will begin taking a small revenue cut in each transaction.
Sales lift Gannett Q2
Media firm Gannett Co. Inc. reported a higher second-quarter profit Wednesday despite lower revenue as the sale of several newspapers boosted the bottom line. The company posted a profit of $365.7 million compared with $310.5 million a year ago. However, excluding the one-time gains of $73.8 million from the asset sales, earnings fell. Revenue declined 3.4% year-over-year to $1.9 billion. Gannett's TV station unit benefited from tighter expense controls and the addition of two stations, but political advertising revenue was lower than in the year-ago quarter.
Blockbuster Inc. said Wednesday that it has amended the terms of a borrowing agreement with JPMorgan Chase, cutting the line of credit by $50 million and tightening repayment requirements. The revolving credit line was reduced fro m$500 million to $450 million, the company said in a U.S. Securities and Exchange Commission filing. Blockbuster recently reported a wider first-quarter loss because of a soft market for movie rentals and heavy spending on its online rental program, which competes with Netflix Inc.