Posted on 08/03/2013 10:10:28 AM PDT by libstripper
After purchasing the Boston Globe in 1993 for a then-record $1.1 billion, the financially troubled New York Times just announced it sold the 141 year-old paper to Boston Red Sox owner John Henry for a mere $70 million. That's a straight 93% loss. Figuring in two decades of inflation would only make it worse -- as does the fact the Times retains the Globe's pension liabilities, estimated at over $100 million.
(Excerpt) Read more at breitbart.com ...
"In 2011, the Times turned down a $300 million offer from Aaron Kushner, CEO of Freedom Communications, Inc., publisher of the Orange County Register and other newspapers in California. This offer even included the assumption of pension liabilities, which are currently estimated at $110 million."
“Let’s all point and laugh at their humiliation.”
From The Grim Adventures Of Billy & Mandy.
My question is, how much did the spend to prop it up while they had it and who put out the money?
And John Henry could wait ten years and assume another 93% loss on his money. Don’t these people realize that there is no money in this type of news anymore?
That’s $70 million more than its worth.
Another free lesson re to never let liberals run a business or a mutual fund.
why diudnt they sell it to Obama? that’s right he already edits it...
There’s no need to do that. The NYT still has the pension liabilities.
Seems like in this world, you don't need to be a prophet or seer. We have seen it all before. Reminds me of Groundhog Day.
5.56mm
Good.
Maybe the government will bail them out like they do everyone else that pushes their agenda.
It’s hard being a Red Sox fan with this clown being the owner. I’m seriously thinking of switching my allegiance to the Yankees or the Mets.
Bwahahaha.
The loss is actually over 100%. They paid $1.1 billion for the Globe and received $70 million on the sale, but also assumed the Globe’s $110 million pension liability. If you subtract that $110 million form the $70 million they received it’s a $40 million on the sale alone that then needs to be added to the total $1.1 billion write off of the original purchase price. Hence, the total loss is $1,140,000,000.
Including the ones run up during the years *before* The Slimes bought it?
The NYT still has the pension liabilities.
You have seen Pinch's balance sheet and P&L?
5.56mm
The huge drop in value is how the Boston Herald led its story too, but here’s how the Globe itself spun it:
“The Times Co. is selling the Globe for far less than the $1.1 billion it paid for the paper in 1993, when the business was highly profitable and the Globe fetched a record price. The Times Co., like other business owners, withdrew a large stream of cash from the Globe during its ownership — a sum at least equal to the purchase price, according to several former high-ranking Globe executives.”
So the Times apparently made about 5% per year on its investment over 20 years—before selling it at a 93% decline in value.
That sounds like the topic of a good folk song.
No, I read the last sentence of the article excerpt.
I can’t tell if the pension liability includes all of them or just the portion incurred after the takeover.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.