Scrambling anew to raise cash for a big debt swap, the New York Times Co. is now trying to sell its 18% stake in the Boston Red Sox and affiliated businesses, according to published reports valuing the share at $200 million or more. A deal could also involve selling The Boston Globe at what would certainly be a shockingly low price, The Wall Street Journal says.The NYT needs to replace a credit line expiring in May; finding a new one will be tough amid a weak economy, and the company's worsening finances. The credit line is one of two, each with a ceiling of $400 million -- roughly the amount outstanding on the two combined. Earlier this month, the NYT said it planned to borrow up to $225 million against its headquarters building in Manhattan.
Two years ago, the NYT refused to sell the Globe after former General Electric CEO Jack Welch and other investors reportedly expressed interest. At the time, they valued the paper at $550 million to $600 million. Barclays Capital now values the Globe at only about $20 million. The NYT paid the Taylor family $1.1 billion for the paper in 1993.The NYT's Red Sox talks come as Gannett business partner Tribune Co. -- now in bankruptcy court protection -- looks to unload the Chicago Cubs. Also, GCI last month sold its minor stake in the Arizona Diamondbacks baseball team, held through The Arizona Republic in Phoenix.
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[Image: today's front page, Newseum]
Could Gannett's share of the Cincinnati Reds be far behind?
ReplyDeleteHow is it Gannett is so dumb and NYT is no smart (sic). Everything on this blog talks about how awful Gannett is, yet everyone else is worse off and going down the tubes faster. It would seem this blog should be focused on positives rather than never ending negatives.
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