The dismantling of a grand old media institution
NYT Hosts Media Fire Sale
John Ellis, The American Interest
Long recessions are great for rich companies; everything’s cheaper and there’s a lot for sale. Long recessions are hell on weak companies; they become sellers in a buyer’s market and liquidity “issues” require that they sell their best assets first.
Combine a massively disruptive technology (the Internet), a weakened company (The New York Times Co.), and a brutal recession, and what you get is a kind of slow-motion fire-sale.
First went the real estate. Then went the NYT’s stake in the Boston Red Sox and NESN (a regional sports cable network). Then went 16 regional newspapers for $143 million. Next (probably) goes About.com, which the NYT purchased for $410 million years ago and is now desperate to sell for $270 million.
Next (after About.com is unloaded) goes the “New England Media Group,” which is to say: The Boston Globe, The Worcester Telegram and some printing operations in Massachusetts. The sale of the New England Media Group won’t fetch much because it carries on its books large under-funded liabilities (retiree health and pension plans). No sane investment group will take on those liabilities unless they are somehow diminished or at least ring-fenced.
(More here.)
John Ellis, The American Interest
Long recessions are great for rich companies; everything’s cheaper and there’s a lot for sale. Long recessions are hell on weak companies; they become sellers in a buyer’s market and liquidity “issues” require that they sell their best assets first.
Combine a massively disruptive technology (the Internet), a weakened company (The New York Times Co.), and a brutal recession, and what you get is a kind of slow-motion fire-sale.
First went the real estate. Then went the NYT’s stake in the Boston Red Sox and NESN (a regional sports cable network). Then went 16 regional newspapers for $143 million. Next (probably) goes About.com, which the NYT purchased for $410 million years ago and is now desperate to sell for $270 million.
Next (after About.com is unloaded) goes the “New England Media Group,” which is to say: The Boston Globe, The Worcester Telegram and some printing operations in Massachusetts. The sale of the New England Media Group won’t fetch much because it carries on its books large under-funded liabilities (retiree health and pension plans). No sane investment group will take on those liabilities unless they are somehow diminished or at least ring-fenced.
(More here.)
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