Times Co will take bids to sell Globe: Report
The New York Times Co has hired Goldman Sachs to manage the possible sale of The Boston Globe, the financially struggling newspaper reported on Thursday.business Updated: Jun 11, 2009 09:42 IST
The New York Times Co has hired Goldman Sachs to manage the possible sale of The Boston Globe, the financially struggling newspaper reported on Thursday.
The Globe, citing two potential buyers it did not name, said Goldman Sachs would request bids for the 137-year-old newspaper in the next couple of weeks. The Times Co. previously announced it had hired the investment bank to sell its 17.5 per cent stake in the Boston Red Sox and related sports properties.
A Globe spokesman declined comment Wednesday, and a Times Co spokeswoman said the company does not comment “on rumors concerning potential acquisitions or divestitures.”
The Times Co recently renegotiated contracts with most of the Globe unions, saying it needed USD 20 million in annual savings and the elimination of lifetime job guarantees or could be forced to close the newspaper.
The Globe has been dramatically affected by the recession, the advertising downturn and the migration of readers online, with USD 50 million in operating losses in 2008 and a projected USD 85 million loss this year.
The Globe’s largest union, the Boston Newspaper Guild, rejected Monday a contract proposal with USD 10 million in annual pay and benefit cuts.