New York Times Company cancels Boston Globe sale
NEW YORK - The New York Times Company has dropped plans to sell The Boston Globe after months of hunting for a buyer for the loss-making daily.
The company broke the news to its employees that it was keeping The Globe by email yesterday.
It had reportedly received a lukewarm response from buyers and last month Arthur Sulzberger Jr, chairman of The New York Times Company, said that the paper's finances had improved enough that the company no longer believed it had to sell if the offers were not attractive enough.
The company said in April that it might close The Globe, which was on track to lose $85m in 2009.
It subsequently made cost cuts that included wage, benefit and job security concessions from union employees.
However in August, the company revealed that it had hired Goldman Sachs to conduct an auction to find a buyer.
Two groups reportedly submitted bids for the paper -- one group led by former Globe executive Stephen Taylor, and the other Platinum Equity, an investment firm that bought the San Diego Union-Tribune.
The bids were said to be in the vicinity of $35m in cash and the assumption of pension obligations, according to the New York Times newspaper.
This sum was a long way off the $1.1bn that the Times Company paid for The Globe in 1993, which was the highest price ever paid for a single US newspaper.
Suffering from a significant downturn in ad revenue amid the recession, the Times Company will continue the process of finding a buyer for its minority stake in the New England Sports Ventures, which includes the Boston Red Sox baseball team.
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