New York Times decides not to sell Boston Globe
2009-10-14

Category Newspapers Nations U.S. City New York City States New York Category Regions County Manhattan Clubs Boston Red Sox Source (AFP)

WASHINGTON (AFP) - The New York Times Co. has decided not to sell the Boston Globe in a move the newspaper said was apparently due to low bids for the struggling daily.

The Times said two bidding groups had reportedly made preliminary offers of about 35 million dollars in cash for the New England daily and the assumption of pension obligations.

The newspaper said the decision not to sell the Globe was "an indication that (the Times Co.) did not think the bids it received were high enough to merit a sale."

The Times Co. bought the Boston Globe for 1.1 billion dollars in 1993 but the value of the newspaper has plummeted since then, along with the fortunes of the US newspaper industry.

Like other US newspapers, the Globe has been grappling with a steep drop in print advertising revenue, steadily declining circulation and the migration of readers to free news online.

The Times Co. threatened earlier this year to close the Globe if staffers did not agree to a package of wage and benefit cuts aimed at saving 10 million dollars a year.

Before the cuts, the Globe had been forecast to lose 85 million dollars this year, according to the Times Co., which has been struggling with escalating losses of its own and a heavy debt burden.

The Times Co. recently completed a sale-leaseback deal for part of its Manhattan headquarters in a move aimed at raising cash to pay down its debt.

It also received a 250-million-dollar loan from Mexican billionaire Carlos Slim.

The Times is also seeking a buyer for its 17.75 percent stake in New England Sports Ventures, which owns the Boston Red Sox baseball team and their iconic stadium, Fenway Park.

With a weekday circulation of around 300,000, the Boston Globe is the 17th largest newspaper in the United States. It began publishing in 1872.