New York Times Co. May Sell The Boston Globe At A Loss

The Boston Globe Co. announced today that businessman Aaron Kushner is planning to buy the New England Media Group from its parent – The New York Times Co. – for $200 million, with a firm offer expected to come within the next few weeks. Kushner, the 38-year-old founder of an Internet company and CEO of Marian Heath Greeting Cards, Inc., issued a statement regarding his plans to bid, sharing that when “we have all of the pieces in place to not just purchase but enrich the institutions, we look forward to making a formal offer.”

While $200 million may sound like a hefty amount, it represents a loss for The New York Times Co. – a loss of 82 percent, to be exact, given that it had initially purchased the Globe for $1.1 billion back in 1993.

The Boston Globe has been performing at a loss for some time now thanks to a drop in print ad revenue, and its parent company has been trying to sell the paper since 2009, but had not received a bid it would seriously consider until now.

h/t AP

New: The Mediaite One-Sheet "Newsletter of Newsletters"
Your daily summary and analysis of what the many, many media newsletters are saying and reporting. Subscribe now!