To cope during the downturn, the company plans to reduce its dependence on credit facilities after paying off $400 million owed on one line of credit in May. This will be accomplished, in part, through mortgaging its headquarters for $225 million--and also by slashing its dividend, for another $100 million.

For several years, newspaper analysts have advised big publishers like NYTCO to cut dividends and focus on investing in digital properties. Now, publishers are being forced to do so as a matter of survival. Indeed, NYTCO has little choice in the matter, as financial analysts expect banks to reduce or cancel entirely one of its $400 million credit facilities after the debt is paid in May.

Robinson also pointed to new revenue initiatives and expense cuts that will keep the company viable through the recession. Robinson's pronouncements about future revenue growth should be taken with a grain of salt, however, as her predictions at financial conferences have sometimes fallen flat. At the Bear Stearns 20th Annual Media Conference in March 2007, for example, she predicted that online revenues would grow 30% that year, but they actually came in around 20%.

While clearly feeling the squeeze of adverse trends coinciding, NYTCO appears to be better off than its peers in the newspaper business. Tribune Co. declared bankruptcy on Monday, Gannett has cut thousands of jobs this year, and McClatchy is said to be selling The Miami Herald, with few expressions of interest from buyers.

Last week, E.W. Scripps also said it is putting up The Rocky Mountain News for sale. There is a strong possibility that the paper will close if it doesn't find a buyer by mid-January. Also this year, Philadelphia Media Holdings, the publisher of The Philadelphia Inquirer, and the Journal Register Co. both defaulted on their debts.

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