Newspapers, in particular the New York Times, are in deepening financial trouble for the reasons enumerated below in this WSJ story.
The Times is looking to sell a significant state in the Boston Red Sox holding company. Serves them right! They should be owning a piece of the Yankees instead.
"The ad recession and migration of readers and advertisers to the Web has sent newspaper publishers under intense pressure, forcing many to try to unload once-untouchable assets. The Times Co. on Wednesday said company revenues fell 14% in November while advertising revenues for the News Media Group, which includes both the Times and the Globe, declined 22%.
The Times Co. has taken several cost-cutting steps recently to satisfy its funding requirements, which includes a $400 million revolving credit facility that expires in May. The company recently slashed its quarterly dividend by three-quarters and said it plans to borrow as much as $225 million against its Manhattan headquarters. But analysts have said the company might need to make more cuts and/or sell assets to avoid drawing more debt toward the end of next year. Executives from Times Co. at an industry conference this month said they are exploring asset sales ahead of what they expect to be "among the most challenging years we have faced.""
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