* Bidding deadline was 2100 GMT on Thursday
* New York Times paid $1.1 bln for the paper in 1993
* Likely to receive less than 10 percent of that
By Jennifer Saba
June 27 The New York Times Co has
received multiple bids for The Boston Globe, according to a
source familiar with the auction of the daily newspaper.
The size and the precise number of the bids by the deadline
at 5 pm EDT (2100 GMT) was not immediately clear though it is
likely the New York Times will receive less than 10 percent of
the $1.1 billion that it paid for the Globe 20 years ago.
It is the second time that the company has put the paper,
and its smaller sister publication, the Worcester Telegram &
Gazette, on the block. But with the financial outlook for the
New England newspapers and the industry as a whole continuing to
deteriorate, there is a greater sense of urgency to get
something done this time.
Analysts estimate the New York Times may get only about $100
million for the two papers. It paid $1.1 billion to the Taylor
family for the Globe in 1993, and in 2000 it bought the
Worcester Telegram & Gazette for nearly $300 million.
The Taylor family is one of the parties that might be
interested in the Globe, according to a source familiar with the
family. Steve Taylor, a former executive at the Boston Globe and
a member of the Taylor family, did not immediately return a call
Other potential bidders could include the private equity
firm Revolution Capital Group, which owns the Tampa Tribune, and
Doug Manchester who bought the U-T San Diego paper according to
a report in the Boston Globe last week.
"They (the New York Times) would be better served getting
less money and getting out of it," said Ken Doctor, an analyst
with Outsell Research.
Revenue at the New England Media Group - the division for
the two papers and related properties - has been on a downward
trajectory. For the first quarter, revenue fell 7 percent to
$85.2 million on declines in advertising and circulation. It has
declined 19 percent since the first quarter of 2009.
The Boston Globe made a small operating profit last year, a
source familiar with the newspaper said, but it is unclear how
sustainable that would be, particularly as a standalone
Among the factors that could depress the prices bidders are
prepared to pay are the newspapers' significant pension
obligations and the difficulty of negotiating changes with more
than a dozen labor unions that represent about three-quarters of
The New York Times first put the Globe up for sale in 2009
as it struggled with losses. But it halted the sale process and
decided to hang onto the paper after winning concessions from
unions and implementing cost cuts.
The New York Times has been slimming down, selling
newspapers, Internet assets and stakes in sports franchises to
concentrate on its flagship newspaper.
The Globe is one of a series of newspapers to go on the
block in recent years as long-time newspaper owners exit the
The Tribune Co, for example, is exploring the sale of its
newspaper division, which includes The Los Angeles Times and the