New York Times Loses $1.7 Billion on Boston Globe Sale

 

 

Communist New York Times publisher Arthur O. Sulzberger, or as he is known to his Mexican master, billionaire Carlos Slim, "my bitch"

 

 

The Times was bought for tip money by John Henry—no, not that John Henry!

 

 

 

That John Henry!

 

 

By Nicholas Stix
Expanded at 3:45 a.m., on Thursday, August 8, 2013

 

Break out the violins! And pop some champagne!

 

The Times bought the Globe 20 years ago for $1.1 billion, which was ridiculous at the time, even before the Web (read: Google) destroyed newspapers' ability to sell enough ad space to remain profitable. On top of the $1 billion loss in resale, according to the Bureau of Labor Statistics' inflation calculator, it would take $1.62 today, to have the same buying power as $1.00 in 1993. (That's not nearly as bad as I would have expected.) Thus, the Times would have had to sell the Globe for $1.782 billion, just to break even.

 

Unless principal Red Sox owner John Henry is severely retarded or a Harvard grad, he can't help but make millions off the deal.

 

Two immediate questions arise, following this announcement: What will Henry's labor policies be, and how will the new owner affect editorial policy?

 

The second question is easier to answer: Very little. Newspaper publishers not named Sulzberger intervene little in the newsroom, with exception of Murdoch in matters of immigration, and even Murdoch increasingly permits pc enforcers to run his newsroom.

 

As for the first question: All newspaper publishers are under pressure to combine functions, but since Henry got the Globe for virtually nothing, he will be under less pressure than any other publisher of a major daily. But that doesn't mean he won't combine functions and gut many jobs, anyway. After all, he's in the newspaper business to make money.

 

Or is he? Many tycoons buy newspapers today to help their other businesses (e.g., real estate) or to amass political power. Which is it with Henry? Beats me.

 

In any event, if he wants to make money directly off the Globe, I have a tip for him: Selling prostitution ads is the way to go, Baby!

Boston Globe, once bought for $1.1 billion, sells for $70 million
Associated Press (CM)
[August 3, 2013]

BOSTON -- The New York Times Co. says it has agreed to sell The Boston Globe to the principal owner of the Boston Red Sox for $70 million, a massive drop from the record $1.1 billion it paid for it.

Times spokeswoman Eileen Murphy confirms the sale of the Globe and other media properties to businessman John Henry.

The Times bought the Globe in 1993. Newspapers have faced difficulties in recent years as advertisers have moved more ads online.

The Times announced in February it was putting the Globe up for sale. The company's CEO said at the time selling the Globe would help the company focus attention on The New York Times brand.

Henry says the Globe's "award-winning journalism" and "its rich history and tradition of excellence" have established it as one of the most well-respected media companies in the country.

The purchase marks Henry's "first foray into the financially unsettled world of the news media," the Globe said ahead of the deal early Saturday.

Henry will get the 141-year-old newspaper, its websites and affiliated companies, it said.
The New York Times Co. announced in February it was putting the Globe and related assets up for sale four years after calling off a previous attempt to sell it.

The company's CEO said at the time that selling the Globe would help the company focus attention on The New York Times brand.

Henry, in a statement published by the Globe, cited the "essential role that its journalists and employees play in Boston, throughout New England, and beyond."

"The Boston Globe's award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country," Henry said.

Henry said he would reveal details about his plans for the Globe in the next few days.
The Times bought the Globe in 1993 for $1.1 billion from the family of former Globe executive Stephen Taylor.

The newspaper has faced difficulties in recent years as advertisers cut spending on newspapers and moved more ads online. Still, the Globe is a journalistic institution in New England and was lauded for its coverage of the April bombings at the Boston Marathon.