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The New York Times Company Plans To Sell Boston Globe $NYT
The Times Wants To Build Its Brand - $NYT
The New York Times has made a decision to sell the New England Media Group to concentrate more on developing their brand. Included in this media group is The Boston Globe, Boston.com and The Worcester Telegram & Gazette. CEO Mark Thompson believes there is too much diversity within these publications. The New York Times is also going to sell 49% of their ownership of Metro Boston, as well as already completing the sales of their stake in Indeed.com and About.com. Building and strengthening a brand that revolves solely around The Times could help improve their longevity, reach and increase shareholder value. The Times’s market cap is currently at $1.44 billion and the stock is priced at about $9.65 as of publication.
The Evolution of Newspapers
Print publications have been struggling in the past decade with the growth of the internet. But that finally seems to be taking a turn, as some publications are realizing how to integrate their non-obsolete news into the digital market place. This is achieved through digital subscriptions, for either a desktop, mobile or the massive market for tablet devices. The New York Times’s website receives a huge amount of traffic and has an advanced website, but their digital subscriptions are nowhere near as successful. A recent report showed their digital ad revenues decreased by 1.7%. Yet ironically their total net income for 2012 was 200% higher than in 2011; $179.9 million compared to $58.9 million. Some of this revenue can be attributed to the sale of About.com and Indeed.com. With this influx of revenue, and the selling off of the New England Media Group, The NY Times may then have the time and concentration it needs to rebuild its digital ad revenue and increase digital subscriptions.