Where are their big advertisers going to go? The LA Times is the only game in town if your main language is English. There are tons of industries that rely on newspaper advertising to get their name out there, and can't really switch anywhere else. (Supermarkets, for example.)
Newspapers in monopoly markets are licenses to print money. That's why scumbag companies like Gannett can come into town, buy the local paper, fire three quarters of the staff and reduce the editorial content by 60%, and still rake in the same amount of revenue the paper was making before (and more than twice the profit).
I'd like to see the Orange County Register delivered in Los Angeles.