The New York Times Co. (NYT) is looking to sell The Boston Globe, even if it has to take a loss to do it.
Bids are set in the $100 million range (a 10th of what NYT paid for the Globe in 1993) with potential buyers including Rick Daniels, a former president of the Globe, and former Time Warner (TWX) CEO Jack Griffin, in partnership with cousins Steven and Ben Taylor, whose family once owned the newspaper, Bloomberg reports.
The New York Times Co. wants cash payments for the Globe to help eliminate the $110 million in pension liabilities of The New England Media Group, the division that manages the Globe. The reason behind the desire for a cash payment is because a potential buyer of the Globe could be unable to pay the debt, and if that happens, the debt will come back to NYT, according to the report.
Whoever buys the Globe will have to put a lot of work into it.
“I can’t believe it’s making much money, if any money,” Edward Atorino, a media analyst with the Benchmark Company, told the Boston Herald. “Circulation is declining. Advertising is struggling. Boston Online hasn’t really set the world on fire.”