Boston Globe, Red Sox on the Selling Block: Times Co. Taking Bids

June 10, 2009

(ChattahBox)—The beleaguered Times Company has been considering selling off some of its more profitable assets to raise some cash, such as its stake in the Boston Red Sox. But, its latest announcement that it plans to take bids on the failing Boston Globe, is more an effort to divest itself of an asset that’s bleeding money. The paper lost $50 million last year alone.

The Times Co. announced on Wednesday, it hired the Wall Street investment bank, Goldman Sachs to handle a possible sale of the Globe and to accept bids. According to the Globe, two bidders are interested, but their identities are being withheld at this point.

Goldman Sachs is also entertaining bids on the Boston Red Sox.

The Globe’s largest union, the Boston Newspaper Guild, just voted on Monday rejecting $10 million in pays and benefit cuts demanded by the company. The company responded by cutting staff salaries by a whopping 23 percent.

The Times Co. also owns the Worcester Telegram & Gazette, which is also thought to be on the selling block. There has been previous speculation that any buyer of the Globe would also purchase the Times’ 17.5 percent stake in the Boston Red Sox as well.

The 137-year-old award-winning daily newspaper, has been struggling to survive during a recession and dwindling advertising revenue. The paper is expected to lose $85 million this year.

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One Response to “Boston Globe, Red Sox on the Selling Block: Times Co. Taking Bids”

  1. Boston Globe, Red Sox on the Selling Block: Times Co. Taking Bids « AddingInfo.com on June 10th, 2009 10:39 am

    […] that it plans to take bids on the failing Boston Globe, is more an effort to divest itself … Read Full Post: Boston Globe, Red Sox on the Selling Block: Times Co. Taking Bids Adding Related Info:Report: Times Co. will take bids to sell Boston Globe – USA TodayReport: Times […]

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