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New York Times Offering the Boston Globe at 90% Off
Posted By Daniel Greenfield On June 27, 2013 @ 4:32 pm In The Point | 8 Comments
Maybe the Koch Brothers will be interested in buying an arrogant snotty liberal paper with declining readership for $100 million. I doubt anyone else will be.
Bloomberg News reports that the New York Times Company, that bought the Boston Globe for $1.2 billion in 1993, is now accepting bids in the range of $100 million, or about a tenth of what it paid just twenty years ago. Complicating matters further is $110 million in pension liabilities:
The New England Media Group, the division that manages the Globe, has about $110 million in pension liabilities, according to two of the people familiar with the matter. Times Co. would prefer cash to help offset the liabilities rather than bids that assume even part of them, one of the people said. Such bids would be less attractive because in the event a new owner of the Globe were to become insolvent, the Globe’s pension liabilities would revert back to Times Co., the people said.
The latter is a sign of how confident the Times is in the Globe’s prospects. Imagine a car salesman who asks you to pay everything now because he expects the car to blow up when it leaves the lot. That is the New York Times’ position here. It expects that the buyer of the Globe will lose his shirt and look to unload it or just dump it.
One of the ironic things about the New York Times trying to report on the economy is that the company has made a series of really bad financial decisions, expanding and trying to build up some kind of media empire, that it now has to resell at a fraction of the price.
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