The New York Times Company (NYT) shed its plan to sell the Boston Globe after effective cost-cutting measures and an increase in price led to an improved financial position.
The company’s series of steps included labor contract concessions expected to cut $20 million yearly in operating costs, consolidation of printing facilities projected to save $18 million a year, reduction in compensation for managers, and a rise in prices for both newsstand and home delivery of the paper. The company is also viewing options to price its online contents on its website, Boston.com.
The newspaper industry has long been grappling with the slump in advertising demand amid the global meltdown, as advertisers are migrating to the Internet due to increasing online readership and lower ad prices.
Earlier in August 2009, The New York Times Company hired Goldman Sachs to explore strategic alternatives for its New England Media Group, which includes Boston Globe, Boston.com, and the Worcester Telegram & Gazette. The company received offers from a private equity investment firm, Platinum Equity, and another from a group led by Stephen Taylor, whose family had sold Boston Globe to The New York Times Company in 1993 for $1.1 billion.
Although the company abandoned the plan to sell Boston Globe, it is still exploring options for the Worcester Telegram & Gazette.
In a separate story, The New York Times Company is trying to sell its minority stake in the New England Sports Ventures that owns the Boston Red Sox baseball team and related cable television properties.
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