Times devalues Globe. What's next?

Published Jan 31 2007, 04:54 PM by Adam Reilly

If you pay about $1.4 billion for something, only to decide later that it's actually worth about $600 million, that's a bad investment.

And that's exactly what's happening with the New York Times Co. and its New England Media Group, which just announced that it posted a $648 million loss in the fourth quarter of 2006 after writing down the value of the Boston Globe and the Worcester Telegram and Gazette by $814.4 million (!). Here's the AP's write up, here's the Herald's, and here's the Globe's.

Dan Kennedy notes that the change suggests the Times Co. agrees with would-be local owner Jack Welch and friends, who've said they value the paper at between $500 and $600 million. "Do the Sulzbergers believe the newspaper market is going to bounce back?" Dan asks. "Or is it look out below? The answer to that question will determine whether and when the Globe gets sold."

Here's my take: if the Times Co. planned to unload the Globe, they'd have done it before telling the world the paper wasn't actually worth all that much. In light of today's news, don't expect the Globe to be sold any time soon.

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1 Comments

John Gatti jr said:

The print media is in decline since the younger generation does not seem to read newpspers. As the owner of The Herald has stated today's readers do not want to pay for the news.The internet with its bloggers and instintness is leaving the print media behind and in a state of turmoil with few if any solutions. What we see in Massachusetts is most discouraging with the massive layoffs of our institution newspapers with The Globe, The Herald, and even The worcester Telegram and The Springfield Newspapers leading the charge of newsroom layoffs and employee buyouts. We see other newspapers suffering circulation and advertising droughts being sold or undergoing similar fates. What is also becoming a calamity is to see journalism as a profession in a massive decline with students seeking other professions and seasoned reporters leaving the vocation because of diminished job opportunities.

February 1, 2007 12:35 AM