Local group may bid for Globe

Boston Globe ^ | October 24, 2006 | Steve Bailey

[ConservativeStatement]

Two of Boston's best-known businessmen -- retired General Electric Co. chief executive Jack Welch and adman Jack Connors -- are quietly exploring the possibility of making an offer to buy The Boston Globe from The New York Times Co.

While neither Welch nor Connors would comment, several executives who have participated in the discussions caution the plans are preliminary. But the executives are working with the investment bank JPMorgan Chase & Co. to analyze a potential deal. They say JPMorgan has valued the Globe at $550 million to $600 million, well below the $1.1 billion the Times Co. paid in 1993.

Times Co. has said repeatedly that the Globe, despite its continued poor financial results, is not for sale.

[ConservativeStatement]

It is not so quiet anymore.

[cynwoody]

They say JPMorgan has valued the Globe at $550 million to $600 million, well below the $1.1 billion the Times Co. paid in 1993.

Kewl!

[JCEccles]

Maybe the LDS Church should buy it.

[misterrob]

Connors is part of the upper crust Irish business mob in Boston. He knows a hell of a lot of people in the business world and he knows advertising but I would be curious to see if he could get the Glob back up and running. A change in political views will make no difference up there given the fact that Teddy gets to go back to booze it up in DC every 6 years.

[ConservativeStatement]

What is Welch's politics?

[Tribune7]

Zen question of the day: If you are filty rich and won't miss the money you burn can you be a sucker?

[Irene Adler]

Pretty sure he is a democrat. Don't know how leftwing or centrist he is within the party, though.

[AmishDude]

I have to say that I love the headline. It's so surreal.

[JennysCool]

Welch and Connors must still be smarting that they didn't get in on the ground floor of that Air America juggernaut.

[Moonman62]

I think this means Welch has jumped the shark.

[ConservativeMind]

I love this.

Their ad people have been really pressed to bring the ads in. However, they aren't getting many clients biting.

I was recently approached, on behalf of a client I represent, to put an ad in a publication of theirs. The target market was good, but the pricing just didn't hit well with me.

I received a call weeks later with an offer for almost 40% off on remaining ad space. We still didn't bite, but it was more in line.

So, if I am to assume, based on their internal valuation of their products, they are finding out that even 60% of their original price isn't enough for buyers.

That tells me they are overvalued by about what this article states.

Interesting.

[misterrob]

Papers make the biggest money on classified ads be that Real Estate, employment or automobile sections. The retail is nice but those sections are the ones that people would actually buy the paper for. The internet completely destroyed their revenue model.

[ConservativeMind]

Add legal notices to the income side of the equation. These must be printed and are a cash cow for the papers.

With classifieds and news content better served on the Internet, the main reasons for grabbing a newspaper are limited. Local content is desirable, but much of this is on the Internet, too.

It's great to see liberals suffer at the hands of the common man with common technology.