$2 billion for old baggage?

as reported when editor dean baquet was ousted, the los angeles times enjoys a 20% operating profit:

The Los Angeles Times reported that its operating profit margin was 20 percent, higher than that of the average Fortune 500 company.

david geffen made a $2 billion offer for the paper, but all i can do is look at the price tag and think how much more sense it would make to just start a new paper with that. don’t for a big-bang launch, but ramp up the editorial production over a couple of years (web-only, at first). i suspect that if there is room for the los angeles times to grow, there’s no reason that another player couldn’t grow into that space. and both papers would be better for the competition.

if he really wants to leave a legacy, geffen should found a los angeles version of the poynter institute.