The New York Times (NYT) Sells Boston Globe To John Henry For $70 Million In Cash
The New York Times Company (NYT) has sold the Boston Globe newspaper to John Henry for $70 million. Henry is the owner of the Boston Red Sox baseball team. This deal is expected to close in 30 to 60 days.
This sale includes the Globe website, the Worcester Telegram & Gazette, and the Boston.com website. The sale also includes a 49% stake in Metro Boston and the Globe’s direct-mail marketing company GlobeDirect.
The New York Times decided to sell the Globe in February. The company hired Evercore Partners to help them manage the sale as part of a plan to focus on The New York Times. The New York Times bought the Globe for $1.1 billion twenty years ago. The New York Times bought the Globe for mostly in stock.
“As a result of this agreement, we will be able to sharpen our company focus on and investments in The New York Times brand and its journalism,” stated New York Times chief executive officer Mark Thompson.
Some of the other interested bidders included Rick Daniels (former Globe president) and Jack Griffin (former Time Inc. CEO). Some of the bids were for a higher price, but they included contingencies that made the deal less attractive. Some of the deals did not offer enough cash up front. According to sources with Bloomberg, the division that manages the Globe, The New England Media Group, has around $110 million in pension liabilities. The New York Times preferred cash to help offset these liabilities rather than bids that assumed part of them.