NY Times to sell interest in Indeed, record $100 million gain

People leave the New York Times building at 8th Avenue and 41st Street in New York, April 21, 2008.

(Reuters) - The New York Times Co will sell its remaining interest in jobs search website Indeed.com, which is being acquired by Japanese executive search firm Recruit Co Ltd.

The company said it expects to record a related after-tax gain of about $100 million in the fourth quarter.

Indeed's co-founder Paul Forster said on Monday that the company will be sold for an undisclosed amount after several months of direct negotiations.

New York Times and Union Square Ventures were the principle investors in Indeed, with Allen & Co owning a smaller stake.

Shares of New York Times, which publishes its namesake newspaper and the Boston Globe, were up 1.7 percent at $9.75 in midday trade on the New York Stock Exchange.

New York Times, which used to be a sprawling media conglomerate with holdings in cable networks, magazines, newspapers and sports teams, has been shedding assets over the past few years to streamline operations and shore up cash reserves as advertising dollars dry up.

The company sold About.com for $300 million last month to Barry Diller's IAC-owned Ask.com.

It is also offering some of its former employees a new payment option in an effort to reduce pension liabilities.

(Reporting by Sayantani Ghosh in Bangalore; Editing by Supriya Kurane)