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NYT Sells Boston Globe At 93% Loss (+ Pensions)

From Breitbart:

New York Times Sells Boston Globe at 93% Loss

By John Nolte | August 3, 2013

After purchasing the Boston Globe in 1993 for a then-record $1.1 billion, the financially troubled New York Times just announced that it sold the 141-year-old paper to Boston Red Sox owner John Henry for a mere $70 million. That’s a straight 93% loss. Figuring in two decades of inflation would only make it worse — as does the fact that the Times retains the Globe’s pension liabilities, estimated at over $100 million…

Did Paul Krugman broker this deal? Mind you, this the same newspaper that tries to tell the rest of us how to run the economy.

In 2011, the Times turned down a $300 million offer from Aaron Kushner, CEO of Freedom Communications, Inc., publisher of the Orange County Register and other newspapers in California. This offer even included the assumption of pension liabilities, which are currently estimated at $110 million.

"Orange County"? "Freedom Communications"? That sounds like there could be some conservatives involved. And they couldn’t have that.

The Times itself reports that today’s sale to Henry does not include pension liabilities. Apparently, those remain a Times’ responsibility and expense.

Oh, our aching sides. So all The Times got out of buying the Boston Globe was their pensions liability.

In September of 2002, the Boston Globe enjoyed a circulation rate of 413,000. The average weekday circulation today is nearly half that: 230,351.

Other than plummeting circulation due to online competition, both the Times and Globe have been plagued by collapsing ad revenues that have only worsened in recent years. Friday the Times reported its 11th straight quarter of falling ad revenue…

Still, we sure hope all this news doesn’t make Jill Abramson cry again.

This article was posted by Steve on Monday, August 5th, 2013. Comments are currently closed.

2 Responses to “NYT Sells Boston Globe At 93% Loss (+ Pensions)”

  1. GetBackJack says:

    See Thomas Lifson’s article in American Thinker today for what could be a messy and illelgal SEC dustup that might come out of this

  2. untrainable says:

    $70,000,000? He got taken.

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