In order to focus more on its core businesses,
The New York Times Company
) intends to sell its New England Media Group, including
The Boston Globe
and its allied properties.
The news comes at a time when most of the publishing companies
are offloading assets that bear no direct relation with their
core operations. The publishing industry has been struggling with
sinking advertising revenues as more readers are gradually
choosing free online news, thereby making the print-advertising
model increasingly irrelevant.
The New England Media Group, which consists of
The Boston Globe
, BostonGlobe.com, Boston.com, Telegram.com, Worcester Telegram
& Gazette and GlobeDirect, generated total revenue of $394.7
million in 2012, down approximately 1% year over year.
The New York Times engaged
Evercore Partners Inc
) as the advisor to guide the company during the evaluation
Last September, the company, which holds a Zacks Rank #3
(Hold) completed the sale of About Group, which it acquired in
) for a consideration of $300 million. Moreover, in May 2012, the
company divested its remaining stake (210 Class B units) in the
Fenway Sports Group, the owner of the Boston Red Sox and the
Liverpool Football Club, for $63 million.
The company in Dec 2011 sold the Regional Media Group -
consisting of 16 regional newspapers, print publications and
associated ventures - to Halifax Media Holdings LLC, the
The Daytona-Beach News Journal
in Florida, for approximately $143 million.
Recently, another publishing company,
The Washington Post Company
) entered into a deal to sell its daily and Sunday newspaper,
, to Black Press Ltd. and its subsidiary, Sound Publishing.
We believe such moves allow the publishing companies to
re-focus on their core newspapers and pay more attention to
online activities, which is gradually gaining pace. The decision
to offload the non-core divisions is also considered as part of
the cost containment efforts undertaken to stay afloat in this
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