New York Times Co. Selling T&G, Globe
The New York Times Co. said it's seeking a buyer for the Boston Globe and Telegram & Gazette.
According to a statement released by the company Wednesday, Waltham-based investment banking advisory firm Evercore Partners has been hired to advise and manage the sales process.
The entities up for sale make up the New England Media Group and include the Globe and the T&G's print products and websites as well as GlobeDirect, a direct marketing company. The company will also sell its 49-percent stake in Metro Boston, a free paper. It's unclear whether the entities will be sold as a group. The company's statement said a sale would be sought at auction, but cautioned, "There can be no assurance that any transaction will take place."
According to a report by the T&G, the group's revenue was down 0.8 percent last year, to $395 million.
Mark Thompson, president and CEO of the Times Co., said the sales are being sought so the company can focus more on its flagship paper. In a statement, he called the Globe and T&G "outstanding newspapers" and said they and their related websites are "well-managed leaders in their markets."
"We are very proud of our association with the Globe and the Telegram & Gazette, but given the differences between these businesses and The New York Times, we believe that a sale is in the best long-term interests of these properties and the employees who work for them as well as in the best interests of our shareholders," he said.
According to the T&G, the Times Co. purchased the newspaper in 2000 for $296 million.
A blog post on NYTimes.com said the Times Co. paid $1.1 billion for the Globe in 1993, which was profitable for years, but recently suffered declines in circulation and revenue that have been widespread within the industry. It said circulation declined by nearly half in the last decade.
According to the T&G, the Times Co. said the Globe was losing money in 2009 and tried to sell it, but after a round of cost-cutting, said it would retain the newspaper.
Late that year, then-CEO Janet L. Robinson said that after exploring various alternatives, the T&G should continue to be part of the company.
The Times has sold other assets in recent years, unrelated to the NYT, which included the sale of its 16 regional newspapers to Halifax Media Holdings of Daytona Beach, Fla., for $143 million last year. That group included The Gainesville Sun, The Press Democrat in Santa Rosa, Calif., The Sarasota Herald Tribune and The Tuscaloosa News.
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