12. 03. 2013

The New York Times Plans to Sell the Boston Globe (again)

New York, March 12, 2013 (Mashable) - The New York Times Company announced that it plans to sell the New England Media Group, which includes The Boston Globe, Boston.com and The Worcester Telegram & Gazette. The Times is also looking to sell off its 49% stake in Metro Boston.

"Our plan to sell the New England Media Group demonstrates our commitment to concentrate our strategic focus and investment on The New York Times brand and its journalism," said Mark Thompson, president and CEO of The New York Times Company, in a statement. "We are very proud of our association with the Globe and the Telegram & Gazette, but given the differences between these businesses and The New York Times', we believe that a sale is in the best long-term interests of these properties and the employees who work for them as well as in the best interests of our shareholders."

The Times originally purchased the Globe in 1993 for $1.1 billion. Under the Times' ownership, the Globe won 10 Pulitzer Prizes and other awards, but in recent years the Globe has been a money-losing operation for the Times Company. The Times previously tried to sell the Globe in 2009, but abandoned that plan after employees at the Globe agreed to cost-saving measures including salary cuts. Any deal to sell the media property at the time was also reportedly hurt by the Globe's unfunded pension liabilities.

In the past year, the Times has shed all of its other newspapers that are not part of the flagship brand - as well as selling off its stake in Indeed.com and About.com. The Boston Globe and its related properties are the last to go.

The New York Times Co.'s stock was down by about half a percent in after hours trading following the announcement.