Date

Wed - 13.12.2017


New York Times Co.

New York Times Co leadership yesterday announced to staffers that the media company would no longer be selling its Boston Globe assets but would continue the search for a buyer for its Worcester Telegram & Gazette division, according to late-breaking news yesterday from the Boston Globe.

In a series of memoranda outlining the revised sale plan going forward, Times Publisher Arthur Sulzberger and Chief Executive Janet Robinson congratulated Globe staffers for the success of the newspaper's restructuring earlier this year, which they credited with "significantly improv[ing] its financial footing." Nevertheless, it was a lack of adequate bids that ultimately prompted the projected sale's reversal, The Times reported shortly following the announcement.

Author

Leah McBride Mensching

Date

2009-10-15 16:06

Top executives at The New York Times Co. yesterday told Boston Globe staffers that thanks to lower pay and increases in price, the Globe is on course to be profitable, and the paper will not need to be sold if acceptable offers are not found, the Globe reported Thursday.

Times Co. Chairman Arthur Sulzberger Jr. and Chief Executive Janet L. Robinson expressed gratitude for the sacrifices made by the employees of the Globe.

Although the company has hired investment banking firm Goldman Sachs to oversee the sale of the Globe's publisher, the New England Media Group, and has received a number of bids, Sulzberger said the newspaper was no longer in a position "where we must absolutely sell the Globe or the Worcester Telegram & Gazette for the good of the company," Sulzberger said.

At the meetings both Globe and Times Co. executives said cost cuts were not finished, but did not reveal any specific plans for cost cutting in the future.

Author

Leah McBride Mensching

Date

2009-09-10 18:43

Media conglomerate News Corporation has recently been in talks with publishers about forming a news consortium to better enable the group to charge for news on both online and mobile devices, the Los Angeles Times reported Friday.

Thanks to its success with its partly paid, partly ad supported Wall Street Journal Online, News Corp. is "a logical leader" to expand that model elsewhere, according to the Times. Chief Digital Officer Jonathan Miller is "believed to have met" with publishers from Hearst Corp., the Washington Post Co., the New York Times Co. and Tribune Co., according to the Times, a Tribune-owned paper.

Earlier this month, News Corp. CEO Rupert Murdoch announced all the media giant's news Web sites will begin charging for digital content by the summer of 2010.

The All Things Digital blog, part of the Wall Street Journal Digital Network, owned by News Corp., pointed out that the biggest problem publishers face when switching to paid content is that "a great deal of the stuff we make can be found all over the Web, with little to distinguish it, and the model that used to support this content-near-monopolies on eyeballs and ad dollars-has disappeared. Pay wall or no, that's going to have change going forward."

Author

Leah McBride Mensching

Date

2009-08-25 15:55

Two of three groups that have made formal bids on The Boston Globe have been shown to the next round of the purchasing process with an invitation to onsite meetings at the newspaper, according to those in the know on the sale, The Globe reported Friday.

This leaves one high profile, but lowest bidding group, without an invitation to visit the newspaper, the group led by Boston Celtics co-owner Stephen Pagliuca and former advertising executive Jack Connors.

Stephen Taylor, a former family owner of the Globe who sold the newspaper to The New York Times Co. in 1993, heads a group that plans to visit the paper around Labor Day, according to Boston.com, the Globe's Web Site.

The other invitee is Platinum Equity, a California investment firm, which has recently entered the newspaper industry with the purchase of the San Diego Union-Tribune.

Both groups have offered US$35 million for The Globe, as well as the assumption of $59 million worth of pension liabilities at The Globe and the Worcester Telegram & Gazette.

The Times Co. owns both papers and potential purchasers were required to bid on both properties.

Author

Leah McBride Mensching

Date

2009-08-24 16:29

For the first time since the Boston Globe was threatened with being sold, the two top executives at the newspaper's owner, The New York Times Co., spoke about the Globe's recent financial roller coaster.

In an interview with the Boston Globe, published on the newspaper's Web site Friday, Times Co. Chairman Arthur O. Sulzberger Jr. and Chief Executive Janet Robinson said the concessions made by staff at the Globe, combined with other cost cutting measures at the newspaper, has left the newspaper positioned for long term survival.

The two executives also said the Times Co. will take its time in arranging the sale of the newspaper, and may not end up selling it after all. They confirmed the company has hired Goldman, Sachs & Co. to oversee the potential sale of its New England Media Group, which encompasses the Globe.

Although the pair did not comment on any potential buyers or the time frame for the sale, they did say that price was not determinative to the sale of the Globe.

Robinson said the Times Co.'s threat to close the paper earlier this year "wasn't a bluff," as the Globe was on course to lose $85 million dollars. "It became pretty clear that we could not sustain an $85 million loss year after year after year after year. No one wanted to close the Globe. No one. When you're losing $85 million, that's not sustainable.''

Author

Leah McBride Mensching

Date

2009-08-07 13:01

The New York Times Co. value increased the most since February of this year on the back of speculation of profit increase, leading a group of newspaper publishers with similar results, Boston.com reported Tuesday.

According to Edward Atorino, a New York-based analyst at Benchmark Co., the Times Co. will earn nine cents a share next year as profits rebound after a 2009 loss. The company surpassed all expectations when it posted significant second quarter profits after significant cost cuts at both The New York Times and the Boston Globe.
"The doomsday scenario no longer applies,'' Atorino said yesterday, according to Boston.com. "The quarter was bad, revenue was awful, but cost-cutting was remarkable. Some who thought they were going to go out of business have to buy stocks.''

Times Co. shares rose 16 percent to $7.71, its highest price since December. Gannett Co. also had significant value growth with a 12 percent gain to $6.52 a six month high. McClatchy Co., formerly forced into delisting from the NYSE, had a 19 percent gain to finish at $1.39.

The three publishers have watched their share prices decline for four straight years and have lost more than 80 percent of their value since 2004.

Author

Leah McBride Mensching

Date

2009-07-28 20:07

The New York Times Co. turned a profit in the second quarter, registering "better-than-expected" profits despite a further fall in advertising revenue, the Wall Street Journal reported Thursday.

Second quarter profits came in at $39.1 million, or 27 cents a share, compared with 2008 profits of $21.1 million, or 15 cents a share, for the same period.

The profit came as the Times Co. made significant cost cutting measure across its newspapers and asset sales. Operating costs were reduced by 20 percent in the second quarter, which The Times expects will save $450 million by the end of the year, according to The New York Times. The company also had a tax benefit of $37.7 million, based on changes in the estimated income taxes in the first half of 2009.

The Times Co. is the most recent in a number major U.S. publishers to report second quarter profit jumps, after Gannet Co., McClatchy Co., Journal Communications Inc. and Media General Inc. all announced net profit increases.

According to Chief Executive Janet Robinson, the Times Co., also followed its fellow publishers with progressive reductions in advertising revenue declines, with a 29 percent decline for June after 35 percent in April and 30 percent in May.

Author

Leah McBride Mensching

Date

2009-07-24 20:24

The Boston Newspaper Guild last night overwhelmingly voted to accept a new contract that includes US$10 million worth of wage and benefit reductions that will help keep the Boston Globe alive and facilitate its sale, Boston.com reported Tuesday.

The newspaper's largest union voted 366 to 179 to ratify the contract, Robert Powers, a spokesman for the Boston Globe, told Bloomberg. The new arrangement includes a 5.9 percent salary cut, more unpaid days off and no health coverage for retirees older than 65.

The decision to approve the proposal end months of negotiations and frees union represented staff from a 23 percent pay cut imposed by owner the New York Times Co. after the last concession offer was rejected. The new contractual arrangement includes the repayment of some of the lost wages with the health fund concessions.

Guild president Daniel Totten said, "It has been a long and difficult period for everyone, and we hope we can now work with prospective buyers to help The Boston Globe and Boston.com to carry on with its vital mission to promote good journalism and protect free speech.''

Analysts believe the agreement will help facilitate the sale of the Globe by the Times Co.

Author

Leah McBride Mensching

Date

2009-07-21 18:53

The Boston Globe's parent company, The New York Times Co., has set a Wednesday deadline for bids to purchase the paper, Editor & Publisher reported.

A letter obtained by The New York Times from Goldman Sachs to potential buyers of the Globe detailed the urgency with which the Times Co. is seeking interested parties. In these early stages, bids from potential buyers would be considered "non binding" initial bids that would help the company decide which interested parties would continue on to a second round of bidding.

Reported potential bidders include the co-owner of the Boston Celtics Stephen Pagliuca, Jack Conners of Partners HealthCare, and former Globe executive Stephen Taylor.

Author

Leah McBride Mensching

Date

2009-07-06 11:59

New York Times Co. Chairman, Arthur Sulzberger Jr., revealed that the Boston Globe, already subject of extensive cost cutting measures, is likely to face more concessions in the near future, Bloomberg reported Thursday.

"There will be still more to come," Sulzberger stated in a memo to employees. "The Globe is on a path to a more secure financial future."

The Times Co. has already secured US$10 million in savings from the Globe's three smaller unions and the Boston Newspapers Guild, the newspapers largest union, will vote on a new contract proposal in July. The new contract will see wages cut by 5.9 percent and concurrent benefits cuts. Union members narrowly rejected the previous concession proposal that included an 8.4 percent pay cut, on June 14.

The Times Co. sought $20 million worth of cost saving measures from its unions, half of which was requested from the Guild. The publisher has predicted the struggling Boston newspaper will lose $85 million this year.

"The Globe was one of the first metropolitan newspapers to be deeply affected by the secular and cyclical forces that are now roiling the entire media industry," Sulzberger said in the memo.

The Times Co. also made $18 million in savings through printing integrations, cuts for non-union staff and raising the price of the newspaper at both the newsstand and for subscriptions.

Author

Leah McBride Mensching

Date

2009-06-29 14:18

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