It's true that advertising for newspapers has fallen off a cliff... and they're facing stiff (and free) competition from the Internet. But all of the newspapers that have gone under so far have one thing in common... massive debt loads from private equity takeovers and inexperienced managers.

From Slate:

In December 2007, he closed on the $8.2 billion purchase of the Tribune Co., which owned the Los Angeles Times, the Chicago Tribune, and the Chicago Cubs. Zell put down just 4 percent of the purchase price-$315 million-and borrowed much of the rest, leaving the company with a $13 billion debt burden.

...Two of the other large newspaper companies that went bust in recent months have similar back stories. A bunch of private-equity types bought the company that owns the Philadelphia Inquirer and Philadelphia Daily News in June 2006, borrowing about $450 million of the $562 million purchase price.

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