Wednesday, February 27, 2013

New York Times Has Put Up Boston Globe for Sale – Gets Bid of $100 Million

 Uh NYT There’s a Lesson Here - Please Stick to News Reporting

A number of years ago, when newspapers were thought to be a constant in the economy for decades to come the New York Times Corporation bought the Boston Globe.  But for the past several years they have been trying to sell it.  And now they have a bid.

New York Times Co. NYT received a formal bid valuing the Boston Globe at more than $100 million last month from a former Globe executive and a Boston private-equity firm, though about a third of the value would come from the buyers assuming some of the paper's pension liabilities, according to people familiar with the matter.

Ok, that sounds pretty good.  Considering that the Globe is losing a pot full of money this looks promising.  So why the advice to the NYT to stay out of the acquisition business?  It’s this interesting fact.

The Times acquired the Globe for $1.1 billion in 1993 but took an $814 million write-down on the paper and other New England Media Group assets in 2006.

Yep, all the news that’s fit to print, and next time NYT, stick with what you know.

No comments:

Post a Comment