How bad of a deal was the purchase of the Boston Globe for more than a Billion Benjy bucks in 1993 ? Well , the headline number of selling out for 70 million cash ( a 93 percent haircut ) , masks the fact that the sale doesn't include a ongoing pension liability of 100 million ! 1 So , the NY Times essentially loses at least thirty million on this deal ( not even factoring any losses over the years at the Boston Globe ) ...... What is the NY Times worth and how much would they have to pay a buyer to complete the sale ?

http://www.breitbart.com/Big-Journalism/2013/08/03/New-york-times-sell-boston-globe-at-93-percent-loss

NEW YORK TIMES SELLS BOSTON GLOBE AT 93% LOSS

 2277

 20

 758

 

---

Email Article

Print ArticleSend a Tip

by JOHN NOLTE 3 Aug 2013, 5:21 AM PDT 1102POST A COMMENT

After purchasing the Boston Globe in 1993 for a then-record $1.1 billion, the financially troubled New York Times just announced 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 the Times retains the Globe's pension liabilities, estimated at over $100 million. 

The Times announced in February that it was putting the Globe up for sale. News reports claimed that bids had been as high as $100 million. What might have sweetened the lower offer for the Times is that Henry offered a straight cash deal, which is expected to close sometime in September or October.

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.

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

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.

Both the Globe and Times have and continue to strongly endorse and champion President Obama and his economic policies, even though those policies have failed to create the kind of economic growth necessary to create a boom in advertising spending. The future doesn't look much brighter.

Last quarter the American economy only grew by 1.7%. Last month saw only 162,000 new jobs created, most of them part-time.