An Interview With Jared Kushner

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L.G.: What's your plan, to be in all 50 states by when?
 
J.K.: I wouldn't say it's necessary to be in all 50 states.
 
L.G.: Are you ratchetting back? I thought that was the original idea.
 
J.K.: Eventually I think we could get to all 50 states, but I think right now our goal, especially over the next year, I hope by the end of '08, is to be in 20 states, in a strong position in a strong way. And then our '09 plan has a bunch more states. Over time I could see us getting to 50, but we're not in any rush.
 
L.G.: I think people will be watching to see whether you kind of crack the code of how to make money on the internet.
 
J.K.: There are a lot of ways that you can monetize that. I think the advertising model works, the job-board model, there's just a lot of interesting things that you could do by owning that space. The best thing about that network is that it's so niche, there's so little waste in terms of who's reading it, so there's really a direct path to reach these people. And if you look at what the internet's done from an advertising point of view, I think it's made a lot of advertisers and marketing firms look at it and say, "now we finally have the ability to be more specific," because the difference between the internet and newspapers is with the internet, you could order a la carte, whereas a newspaper is like ordering a buffet. If you're a specific target, there are ways with higher degrees of precision, to target your target demographics now. So I think that's what's changing in the world. The best news about the internet is that even all these people who are big titans of industry, who have been doing publishing for a lot of years, they're just as confused as I am. The only difference is that I don't have big bureaucracies to try and change. I've grown up with this stuff a little bit more than they have, so I guess I'm able to take more chances, and I have less to lose. I'm, like, in publishing school. I've never done this before so I just hope that I succeed more than I fail and I'll be okay.
 
L.G.: Were you really in the mix on the Newsday bidding? [Press reports suggested Kushner, along with Mort Zuckerman, Rupert Murdoch, and the Dolan family [of Cablevision and Madison Square Garden fame], was interested in acquiring the Long Island newspaper from the Tribune Co's Sam Zell.]
 
J.K.: I never spoke publicly about what we were doing on that.
 
L.G.: Now is your chance.
 
J.K.: I appreciate it, but no.
 
L.G.: Were you interested?

J.K.: Yeah, I mean it's an incredible asset. Newsday is a monopoly in that it's the only game out there, and I think the management has started to, and will continue to, turn around the business. I think that there's real opportunities for growth there, and I think that, at the end of the day, there's just a lot that you could do with the product like that.
 
L.G.: The Dolans obviously won it [last month, for $650 million]—so are you out of it now? Totally? I mean, you went and talked to Charles Dolan.
 
J.K.: I've never confirmed any reports of anything. I never spoke to the press. I was very impressed that the press got everything that they did. Right now, I'm looking at a lot of different exciting opportunities. I think the Dolans paid a good price for the asset. I think hopefully it'll make a lot of sense for them in terms of—

L.G.: They paid a good price for Sam Zell, or was it a good price for them?
 
J.K.: Well, I think if you look historically at the multiples that newspapers have traded at, newspapers historically traded at 10 to 12 ebitda multiples and the price they paid is probably closer to an 8-multiple on ebitda [in other words, Earnings Before Interest, Taxes, Depreciation and Amortization—a generally accepted metric of profitability.] I think we're in a time where there's no debt available so we're in a recession, and they had this structuring issue, which kept a lot of people away.

L.G.: If it was such a good price, why did Murdoch bow out?
 
J.K.: I think you'd have to ask Rupert about that.
 
L.G.: By the way, since you arrived here, you became sort of an instant media figure in New York. When you bought the Observer, that put you on the radar screen, big time. A lot of people have reached out to you, have they not? People like Murdoch?

J.K.: I would say I'm very fortunate to have met a lot of interesting people. New York is definitely the greatest city in the world and I think that one of the reasons it is that way is because it's got such a cast of characters who are really very impressive in so many ways. The reason why a lot of these people have gotten to where they are is because they've got a lot to give. I have been very fortunate to be able to spend time with a lot of very interesting people who have given me a lot of good advice.

L.G.: Give me an example of some good advice that somebody gave you in the last two years. [In an Australian accent] "Never get in a price war with me, mate!" Like that?
 
J.K.: [Laughs.] It could go on and on, I guess. I was speaking with one newspaper person. One of the great things was, I was sitting—I would do this, but I just don't want to betray anybody—I don't know, I really value personal relationships. I think on good advice, I could sum it up generically. Some people advise me with the Observer, "it's a very special institution, and don't screw it up." You know, in the sense that you really have to be cognizant of what you have. Don't be afraid to take chances with the paper, try new things, don't be afraid to fail. Other great advice I've gotten is that at the end of the day, good content is what sells newspapers. There's shaping, formatting, whatever it is, but if you're bringing heat and if the paper inside is good, if the content is good on a weekly basis, and you're giving people something they can't get anywhere else, you will sell newspapers.

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