The New York Times has agreed to sell the Boston Globe to the owner of Red Sox baseball team, John W. Henry. The parties to the deal are on good terms with each other as New York Times used to own a stake in the Fenway Sports Group run by Henry. The Fenway Sports Group owns the Red Sox, stakes in New England Sports Network cable TV channel, and the Liverpool Football Club.
What is being talked about is the absolutely low consideration the transfer is taking place, though most people say it is for the better as Henry has strong local roots in the New England community and concerned about the future of the Boston Globe.
While the New York Times had purchased the Boston Globe for $1.1 billion in 1993 (including pension and other liabilities), it is being sold for a sum of $70 million, while the New York Times would still continue to bear the pensions in existence at the time of sale.
The sale also includes other properties including the Worcester Telegram & Gazette, a direct mail marketing company, as well as related digital properties. New York Times had bought the Worcester Telegram & Gazette for $300 million in 2000.
Henry, who generally avoids the media, however expressed in a statement that he wanted everyone to know about how strongly he felt about the role of the enterprises in New England and that he deeply admired the “award-winning journalism” of Boston Globe as well as “its rich history and tradition of excellence.”
The papers had been experiencing decline in revenue like many other hard print publications. Total revenue fell by 7.4 percent due to decline in advertising and circulation in the second quarter. The papers were also beset by labor problems.
The New York Times was unsuccessful in selling the Boston Globe in 2009 when struggling with losses and decided to continue running the paper after unions agreed to cost cuts and allowing the company sizable concessions.
Mark Thompson, chief executive of the New York Times Co, said in a statement, “we’re delighted to have found a buyer in John Henry, who has strong local roots and a deep appreciation of the importance of these publications to the Greater Boston community.”