"The New York Times (NYT) is now running on fumes. S&P has downgraded the company's debt to junk, and Moodys is about to do the same. The stock has fallen to $10 $9, and is being propped up primarily
Given the ongoing decline of print advertising, management now has to take emergency steps to avoid defaulting on the company's $1.1 billion of debt.
and 24/7 Wall Street
have put together a seven-part rescue plan:
- 1. Sell the stake in the building. The New York Times recently moved into a spectacular new Times Square headquarters...
"The Times said it is looking for ways to reduce its debt, but said it is a difficult time to make asset sales."
- 2. Try to sell the Boston Globe and Red Sox stake. Probably a few hundred million of value left in the Globe, at least for a while. Newspaper assets are hard to sell these days, but the Globe is a famous, valuable franchise. It might fetch $300-$400 million. (Jack Welch approached NYT about buying the Globe in October 2006. He is one of the few people who could raise the money.)
- ***Not true of course, Pinchy, in the case of the Red Sox!!! They could sell that in 2 seconds to any remaining fraternity brothers of Bud Selig. (sm)
Labels: The New York Times should sell the Red Sox to save itself