The New York Times Company
) reached a new 52-week high of $11.07 on Jun 27, 2013. This
diversified media conglomerate eventually closed trade at $10.88,
recording a year-to-date return of 24.8%. Average volume of
shares traded over the last 3 months was approximately 1,532K.
Moreover, the company currently trades at a forward P/E of 26.9x,
a substantial premium to the industry average of 16.6x.
The company has been adding diverse revenue streams - such as
a pay-and-read model for NYTimes.com- to make it less susceptible
to economic downturns. The New York Times Company is also
adapting to the changing face of the multiplatform media
universe, which currently includes mobile, social media networks
and reader application products in its portfolio. The company
wishes to launch a lower priced as well as premium subscription
based model to cater to the various tastes of the masses.
Furthermore, it intends focus on online video production
and brand extension as well.
The New York Times Company is taking long strides to include
more readers under the ambit of its subscription based model. In
connection to this, recently, the company announced that Jun 27
onwards, mobile app users will be able to access a maximum of
three articles per day from over 25 sections, blogs and
slideshows, before having to subscribe.
Another media conglomerate,
) has also moved toward an online subscription based model for
general news content. News International, a subsidiary of News
Corporation, began charging readers too for online content of
The Times of London
Sunday Times of London
from Jun 2010. Moreover,
Gannett Co., Inc.
) initiated a paywall model as well.
Notably, publishing companies have been divesting assets that
have no direct relation to the core operations. As a part of its
ongoing strategy, The New York Times Company divested its
remaining stake (210 Class B units) in the Fenway Sports Group in
May 2012. The company also completed the sale of Regional Media
Group to re-focus on its core newspapers and pay more attention
to its online activities. In Sep 2012, the company completed the
sale of About Group, and in the same year in October sold its
stake in Indeed.com. Reportedly, The New York Times Company has
received several bids for The Boston Globe.
Another diversified media conglomerate to have taken similar
The Washington Post Company
), which has sold out its daily and Sunday newspaper -
- to Black Press Ltd. and its subsidiary, Sound Publishing.
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