On Nov. 1, Private Capital Management LP, a large shareholder in numerous newspaper companies, wrote to the management of Knight Ridder asking that the nation's second largest newspaper chain "aggressively pursue the competitive sale of the company." Two days later, two other large shareholders seconded the motion. Shortly thereafter, Knight Ridder announced that it had decided to "explore" alternatives, "including a possible sale of the company." It is axiomatic on Wall Street that bear markets beget consolidation. The bear market in the newspaper industry should foretell a spate of mergers and acquisitions. But what if there are no buyers? This...