There is something a little sad and dispiriting about this. It is being reported that whoever buys the Boston Globe will get another New England newspaper thrown in for free. In this case the Worcester Telegram & Gazette.
It is almost like some newspapers are doing so badly that media owners are willing to give them away as opposed to simply closing them down, which can be more costly depending on labour deals.
It could be taken as an indication of how keen the New York Times Company is to offload the Boston Globe, I mean why else would it also be willing to throw in the Worcester Telegram & Gazette?
The bundling of the Worcester Telegram & Gazette with the Boston Globe comes according to a letter sent to possible bidders by Goldman Sachs, which is handling the sale of the loss making paper. The letter was (funnily enough) seen by New York Times reporters. This always makes me laugh particularly when the story includes (as this one does) the line that the New York Times Co had no comment to make.
"The confidential letter from the company’s investment bankers at Goldman Sachs, which was obtained by a Times reporter, says the company will focus on getting the highest price and “on the certainty and speed with which bidders can sign a definitive agreement and complete an acquisition.” It sets a July 8 deadline for initial, nonbinding bids, after which the company would choose which potential buyers would participate in a second round and would be allowed to submit binding offers," the New York Times reported.
On Paidcontent, which blogged the story, it also had that an internal New York Times Co memo sent out earlier this week, revenues at the New England Media Group (which includes the Globe, Boston.com, the Telegram & Gazette and its website) were revealed to have declined from $700m in 2004 to $524m last year. The Boston Globe itself is set to lose $85m this year alone.
There are three bidders in the running for the paper including Jack Connors, co-founder of Hill Holiday.
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Oh my! Imagine the losses their are incurring. Just think of it repercussions on the effects if they will declare bankruptcy. Their employees will lose their job and their families will get affected :(
Gordon Macmillan
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