New York Times Co. (NYSE: NYT) execs have said all along they might not sell the Boston Globe and today, the company announced just that, halting the months-long bidding process. The statement: “On October 14, 2009, The New York Times Company (the “Company”) announced that after careful consideration and analysis, it has terminated the process to explore the sale of The Boston Globe, Boston.com and related businesses and they will remain within the Company. The Company continues to assess strategic alternatives for the Worcester Telegram & Gazette, and is determined to reach a conclusion there quickly.” A possible bidding group for the Worcester paper emerged in recent days.

Chairman Arthur Sulzberger, Jr. and CEO Janet Robinson told employees of the decision via a memo (text below) after the market closed this afternoon. In it, they cited “significantly improved” finances: “All along, we explicitly recognized that a careful restructuring of the Globe was one possible route and, thanks to your hard work, that is precisely what has been done.” That restructuring included the labor negotiations that cut $20 million from union contracts, managed in part by threatening to close the paper if the demands weren’t met.

Neither the terse statement nor the memo address the instant assumption that the bids from a Boston group led by former Globe exec Stephen Taylor and PE firm Platinum Equity were too low to justify selling the paper and Boston.com, acquired by NYTCo. in 1993 for $1.1 billion. Serphos said the company wasn’t going into detail when asked if the bids were too low. It’s also possible that the bids were right where the company expected—and that Sulzberger, Robinson and the rest decided the Globe and key asset Boston.com literally are worth more as part of the company than in a sale.

The decision does not affect efforts to sell the company’s stake in its non-newspaper New England holding, according to spokeswoman Abbe Serphos. “We are moving ahead with the potential sale of our interest in New England Sports Ventures, which includes the Boston Red Sox and approximately 80 percent of New England Sports Network, a highly rated regional cable channel. The bidding process is underway.”More to come.

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Note from Arthur and Janet to all Boston employees on Wed. 10/14 at 5 p.m.

After careful consideration and analysis, we wish to tell you that we have terminated the process to explore the sale of The Boston Globe, Boston.com and related businesses, and they will remain within The New York Times Company. 

We continue to assess strategic alternatives for the Worcester Telegram & Gazette, and are determined to reach a conclusion there quickly.  We will provide a full update to our colleagues in Worcester as quickly as possible.

We know this has been a long and painful process, and we deeply appreciate the focus and dedication that you have all displayed over the past several months.  Janet will be visiting Boston tomorrow for an employee town hall meeting at 11 a.m.  She will talk with employees and take your questions.

The Globe has significantly improved its financial footing by following the strategic plan it set out at the beginning of this year.  All along, we explicitly recognized that a careful restructuring of the Globe was one possible route and, thanks to your hard work, that is precisely what has been done. 

The comprehensive financial strategy you executed incorporated a series of measures to increase revenues and lower costs, including:

  * Consolidating printing facilities, expected to save $18 million a year,
  * Increasing prices on newsstand and home-delivered copies of the Globe,
  * Reducing compensation for the Globe’s managers and other nonunion employees,
  * Restructuring the Globe’s labor contracts, which we are projecting will save $20 million in annual operating costs. 

The great things you have accomplished both on the financial side and the editorial side of the Globe and Boston.com have solidified their positions as the leading media vehicles in the region.  With these strategic steps, the Globe is on track to achieve substantial savings and is on a path to a more secure financial future. 

For these initiatives to be successful it was necessary for the Globe’s readers, Boston.com’s users and the greater New England community to continue to embrace our products.  They have responded with unwavering support of the Globe, its offerings and you.

We want to take this opportunity to express our gratitude to you for your many significant accomplishments under difficult circumstances.  We applaud you for all that you have done and look forward to charting our future together.

Arthur & Janet

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