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New York Times Planning To Offload Boston Globe
By Zacks Investment Research on June 11, 2009 | More Posts By Zacks Investment Research | Author's Website
The New York Times Co. (NYSE:NYT) seems sickened with troubles at its Boston Globe unit. A day after its largest union filed with regulators to contest a 23% pay cut, the parent body reportedly initiated efforts to sell the 137-year-old newspaper.
The Boston Globe reported in its Wednesday edition that the Times Co. has hired investment bank Goldman Sachs Group Inc. to approach potential buyers for the struggling broadsheet and will seek bids through the next few weeks.
A representative of the Times Co. said, “Because we have achieved the $20 million in savings we needed, we do not foresee closure at this time and are focused on executing The Globe’s turnaround plan.”
The largest labor union Boston Newspaper Guild rejected $10 million in concessions aimed at cutting costs at the newspaper earlier this week. The Times Co. has however been able to get major concessions out of the remaining four unions in the last two weeks.
Despite a projected loss of $85 million in 2009, New England’s largest selling newspaper still generates some cash. Now that the Times Co. has ruled out its closure, Boston Globe employees will heave a sigh of relief.
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