Maybe the real headline should be, “Financial Times finds old way to save newspapers.” It’s called the lawsuit. As reported by Cityfile:
You know we’re in a deep recession when even billionaire financiers can’t afford to pay for subscriptions to the Financial Times. In what will go down as one of the more bizarre (and unintentionally hilarious) lawsuits we’ve seen in quite some time, the newspaper filed a lawsuit against Steve Schwarzman’s Blackstone Group on Wednesday for sharing an FT username and password instead of setting up separate accounts for its employees. Yes, an unknown “senior employee” at the colossal private equity firm “authorized the initiation and repeated renewal of an individual, personal subscription to FT.com” and then distributed the login details to company employees so they could all join in on the fun. (The court documents list the username as “theblackstonegroup” and the password as “blackstone,” although FT says it has since “disabled the credentials to mitigate damages.”)
The New York Post gives us the background on why the situation is absurd on its face:
Blackstone’s penny-pinching ways stand in stark contrast to the way Schwarzman lives. Two years ago, his wife threw a $3 million 60th-birthday party for the buyout king that featured 500 guests, and included a performance by Rod Stewart. A Wall Street Journal story chronicled Schwarzman’s fondness for $40 crab legs and for running up weekend food bills of $3,000.
For MediaFile’s part, we see another tool that U.S. newspapers can employ to enrich their depleted coffers. Newspaper publishers usually wait for one among them to step forward and take action before falling in en masse (cutting dividends, laying off workers, etc), and we wonder why the lawsuit route should be any different.