The Boston Globe reports:
In a Nov. 17 letter, Times Co. chief executive Janet Robinson said the Globe remains an important Times Co. asset, and said the company was not interested in pursuing the sale, according to two executives who have seen the letter.
Executives close to the Welch group, which includes longtime Boston advertising executive Jack Connors and Boston concessionaire Joe O’Donnell, said the three had no plans to abandon their effort.
Welch, Connors, and O’Donnell began discussing a potential bid for the Globe several months ago. An analysis done for them by JP Morgan Chase & Co., the investment bank, valued the Globe at $550 million to $600 million, about half the $1.1 billion the Times Co. paid for the paper in 1993. The three men tentatively had committed $25 million each to the bid and intended to borrow much of the rest.
The rejection comes as the company is under pressure from some shareholders. One big shareholder, Morgan Stanley Investment Management, which owns 7.6 percent of the Times Co.’s stock, has submitted a proposal seeking governance changes.
Among them: putting the Times Co.’s dual-class share structure, which concentrates control in the hands of the Sulzberger family, to a shareholder vote and separating the jobs of chairman of the company and publisher of The New York Times. Both jobs are now held by Times Co. Chairman Arthur Sulzberger Jr.
Times Co. stock is down about 8 percent this year in a market that has been hard on newspaper companies.
The Boston Globe circulation has been very weak.
Daily circulation fell 7 percent to 386,000 in the six months ended Sept. 30.
Sunday circulation fell 10 percent to 587,000.
Daily newspaper circulation in Massachusetts has fallen faster than the national average in the past year, according to the Audit Bureau of Circulations, as the state’s technologically sophisticated population migrated to Internet news sources.
Average daily newspaper circulation in Massachusetts fell 6 percent in the past year, while daily circulation nationally fell 2.8 percent.
My feeling is this:
1. If The New York Times wants to play a leading role in the new online media landscape, needs to invest a lot of money and resources.
2. But the traditional operations are weaker and weaker, and the trend will accelerate.
3. The Boston Globe under The New York Times army is considered a local paper owned by ¨the people from New York¨
4. What Jack Welch see here is a great opportunity: to make the paper “local” again, and to help The New York Times to get cash that is needed for other business.
5. Unfortunately, The New York Times can not expect to make any profit from this sale: they paid too much and the Boston Globe is today, I am sorry, not worth of that price.



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