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Sulzberger: ‘Price Is Not Only Consideration’ In Globe Sale

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The New York Times Co. (NYSE: NYT) has gone public with efforts to sell the Boston Globe and the rest of the New England Media Group but Arthur Sulzberger, Jr., is staying away from absolutes about an actual sale. In his first interview on the subject, Sulzberger told the Globe: “We are exploring that as a possibility. It does not mean it will absolutely be the case. What’s important here is that the Globe be maintained as a viable business entity, whether it’s sold or we continue to operate it, and to make sure it has the financial stability to ensure its continuity. We’re committed to that.”

He also said he was aware of concerns that a private equity bidder might come in and make big staff cuts, as was the case with Platinum Equity and the San Diego Union-Tribune. The Globe reported today that Platinum is one of three bidders, with a $35 million offer plus the assumption of $59 million in pension liability. “Price is not the only consideration,” he told the Globe.

The announcement in an SEC filing—and the joint interview with Sulzberger and NYTCo CEO Janet Robinson—comes after months of turmoil for the Globe and years of bad financial reports. In April, company executives told union leaders that the paper was on track to lose $85 million this year and would close the Globe if $20 million in costs couldn’t be cut. That came down to the wire; it took the Newspaper Guild two votes to get its $10 million package through. Sulzberger and Robinson stayed at arms length from the process, despite direct pleas from employees that Sulzberger step in.

The two say that was the right approach. Sulzberger: “Coming up there and saying this is what New York is telling you to do would have been, one, not the way we operate, and two, would have exacerbated the situation and not helped alleviate it.” More in the transcript.

Aug 7, 2009 10:03 AM ET

Arthur Sulzberger Photo: NYTCO


Posted In: Media & Publishing, Newspapers, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, New York Times, arthur sulzberger, boston globe, janet robinson

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