For the people who are saying things like "the free internet is doomed", you're kidding yourselves.
I liken this story to the one about Blockbuster stores going under. Bloated newspapers like the New York Times and others are in trouble for a few reasons.
For one, there is almost no market entry cost for online news sources. If you have access to a computer, you can make a web page. This wasn't true in the past; newspapers required a lot of money to start up, and thus there was less competition. Larger newspapers had big advantages because they could print more papers and write more articles. Now, how many people read the ENTIRE paper. Most people are more interested in a few key areas of news (business, local, science, etc.). It may not be profitable for a large company with many employees, reporters, editors, etc. to operate solely online; the ad revenue just won't cover all of their salaries. However, a smaller group of entrepreneurs could make a website for a specific news area and get a lot of traffic that could generate enough revenue for each of them to survive on.
The internet news market is no place for bloated companies. It's for small specialty groups who can target a niche market. The sites stay free, and the news keeps flowing.
Information should be free. Long live the free internet!