(New York) Times Co. May Include 2nd Paper in Globe Sale (Dinosaur Media DeathWatch™)

The New York Times ^ | June 26, 2009 | RICHARD PÉREZ-PEÑA

[abb]

The New York Times Company hopes to sell a newspaper in central Massachusetts along with The Boston Globe and wants the buyer of the papers to take on $59 million in pension liabilities. It intends to make a deal quite quickly, according to a letter sent to potential bidders.

The confidential letter from the company’s investment bankers at Goldman Sachs, which was obtained by a Times reporter, says the company will focus on getting the highest price and “on the certainty and speed with which bidders can sign a definitive agreement and complete an acquisition.” It sets a July 8 deadline for initial, nonbinding bids, after which the company would choose which potential buyers would participate in a second round and would be allowed to submit binding offers.

A company spokeswoman, Catherine Mathis, declined to comment on the letter or a possible sale.

In the document, Goldman Sachs does not hint at an anticipated price for The Globe, for which the Times Company paid $1.1 billion in 1993. But the paper has turned into a significant money-loser, becoming the most troubled asset of a company that has scrambled this year to cut costs and raise cash.

The Goldman Sachs letter begins by referring to a transaction involving the Times Company’s New England Media Group, which includes both The Globe and The Worcester Telegram & Gazette, which the company bought in 2000, along with their Web sites.

That wording seems to suggest that the two papers would be sold as a package — the letter does not explicitly address that question — and it is not clear how that would affect the thinking of possible buyers.

snip

[abb]

I just bet there are buyers lined up around the block...

[abb]

ping

[qwertypie]

Oh, boy. Let’s get into the pension liability market and make a killing.

[abb]

http://online.wsj.com/article/BT-CO-20090626-715990.html
Crisis Dominates 2009 Advertising Industry Meeting In Cannes

http://www.boston.com/business/ticker/2009/06/times_co_report_2.html
Times Co. reportedly sets bid deadline for Globe

http://www.nytimes.com/2009/06/27/business/media/27media.html?ref=business
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http://www.latimes.com/business/la-fi-magazines-jackson27-2009jun27,0,4333624.story
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[Proud_USA_Republican]

"and wants the buyer of the papers to take on $59 million in pension liabilities"

Bwhahahahahaha!!!!!

[abb]

Let’s see now. The property is losing money with both hands. And it has beaucoup in pension liability.

Yes. I understand now.

I predict there will be many, many bidders.

/sarc

[abb]

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003988495
NYT Co. Hopes to Sell ‘Globe’ and 2nd Paper ‘Quickly’

[Landru]

"The New York Times Company hopes to sell a newspaper in central Massachusetts along with The Boston Globe and wants the buyer of the papers to take on $59 million in pension liabilities."

Oh, is that all.
Sort of like a *twofer*, eh?
That Pinch-boy & his NYSlimes Company, what a gaggle of mensches. LOL
{Rick Wagoner says, "Don't do it!"}

"It intends to make a deal quite quickly, according to a letter sent to potential bidders."

"It" does, huh.
Well, "It" remains to be seen.

[Lonesome in Massachussets]

“We lose money on every paper we sell, but we make it up in volume.”

[abb]

http://www.niemanlab.org/2009/06/what-counts-more-than-desig/#more-6284
What counts more than design in attracting an online news audience?

http://cancelthebee.blogspot.com/
Sell-off!... McClatchy shares drop 32 percent

[hoosier hick]

But wait! There’s more! (cue Billy Mays, Anthony Sullivan, or Mr. Sham-Wow)

Let the bidding war begin..

hh

[Zakeet]

Let’s see now. The property is losing money with both hands. And it has beaucoup in pension liability.

Most people have no idea how serious the unfunded pension issue is -- or how much worse it will become after the RAT caused inflation hits with full force. This is primarily due to the following two issues:

• Inflation will wipe out the purchasing power of pensions unless they are increased either through indexing or through massive increases. Count on the NYT's unions to demand both. Count on that to trash the buyer's financial statements.

• Inflation will wipe out market stability -- subjecting most securities (both stocks and bonds) to huge price and yield swings. Unfunded pension liabilities are based on actuarial computations, and when these fluctuate wildly, expenses, cash contributions and liabilities follow suit. This further trashes the buyer's financial statements.

It will take an idiot to purchase the NYT's properties. And if the Times is somehow fortunate enough to locate one, the sale will essentially be a sham because the Times will either have to take back the property or write-off the debt when their pigeon becomes insolvent.

[dangus]

Selling the Worcestor Telegram & Gazette with the Globe is a no-brainer. Apart from some traditional format issues, it’d be like selling LI Newsday with NY Newsday. (Those papers re-merged several years ago.)

[ikka]

The real value of newspapers is in their ability to spout propaganda. Look at the ridiculous numbers that billionaires were paying for newspapers a few years ago - it was all about power, not profit.

To be successful at propaganda, they need to have circulation. Without circulation they are dead.

[abb]

http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2009/06/26/journalism_in_the_era_of_twitter/
Journalism in the era of Twitter

[abb]

http://www.tampabay.com/features/media/article1013867.ece
TMZ, Twitter and Facebook seize their Michael Jackson moment

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/06/26/BU2918EH8L.DTL
News as a social medium

http://www.clientrevolution.com/2009/06/on-michael-jackson-the-media-and-law-firms.html
On Michael Jackson, the media, and law firms

[muawiyah]

Looks like the former Globe management or the current NYT management promised the unionized workforce pensions but then failed to finance the pension funds.

So typical of your modern "newsie" to just flat out lie to people. It's also typical of your modern "union leader" to accept deals like that.

Look, I've never been impressed by any of today's union leaders, and certainly not with their support staffs of slimey lawyers and corrupt accountants, but this is getting ridiculous. We have LAWS about pension funds and it seems to me it's time to start rounding up the MANAGEMENT responsible for this, and to initiate disbarment for the lawyers who advised the union officers that it was all OK.

[muawiyah]

The “would, could, should, may” situations regarding possible inflation remind me of the “would, could, should, may” situations regarding Global Warming models ~ and are about as convincing.

[Chode]

$59huh??? it'll be interesting to see who, if anybody is stooopid enough to take on that kind of cancer.

[Zakeet]

The “would, could, should, may” situations regarding possible inflation remind me of the “would, could, should, may” situations regarding Global Warming models ~ and are about as convincing.

Inflation is always and everywhere a monetary phenomenon.
Milton Friedman, 1970

Global warming is based on obvious junk science. No known cause and effect -- and no empirical evidence.

The mechanisms behind inflation are well known, well understood and and have been proven many times. That is why more than 250 noted economists, including six Nobel laureates, went on the record this past winter urging Congress not to pass Porkulus Maximus. Their warnings went unheeded and now some of our indicators (e.g. deficit size, revenue shortfall, growth in currency, etc.) are worse than than those for many countries which have experienced massive hyperinflation.

My best professional advice is to regard the future economic crisis as inevitable and immediately begin to make necessary preparations.