I think newspaper entities will always live on, but through the next 10 years the evolution will change them dramatically! I work for the website of a large family owned newspaper, and the biggest threat is pure revenue. Obviously we can't charge the same for print advertising as we did 5-10 years ago since our readership is down dramatically from then... and online is nowhere near making up for those losses! I think the original idea is that the website will make up for revenue as print loses it, but the drop in print money has fallen out exponentially, making a huge ripple effect throughout the entire company. Bulk layoffs (20-30 people at a time) have only stayed off the execution... it's simply a matter of time before the print company of 300 becomes the online company of 75. The one thing that keeps print afloat for the time being is classifieds. They've been doing it for so long that the general public automatically go to the paper for jobs/cars/real estate/ etc.; but the new generation of professionals and consumers are straying away more and more.
Online is Newspapers saving grace, yes... but it will NEVER be as it was, and the big newspaper tycoons of years past are gone forever. Local news and information will remain the key player... but will only last for so long.