New York Times needs more than cash

December 30, 2008

Cash is king for the New York Times right now.

The media world has been swirling with talk about the company looking to sell The Boston Globe and its stake in the Red Sox. Now comes news that the company has told securities regulators that it may sell shares or other securities to raise cash.

Remember, the New York Times has a $400 million credit line due next May. It also is borrowing $225 million against its Manhattan headquarters. The company has made other moves to conserve cash, including cutting its dividend by nearly 75 percent.

But raising cash isn’t all that easy in this environment. Yesterday two Boston businessmen denied they were interested in buying The Boston Globe or the Red Sox stake, and selling shares would only put more pressure on an already depressed stock price. Besides, while cash will buy the New York Times some breathing space, it hardly solves the long-term problems that are crushing the newspaper business.

Here’s the take from Silicon Alley Insider:

Any cash the New York Times raises in the current environment will be outrageously expensive. It’s also hard to imagine that the company will attract much interest from equity investors until it can articulate a plan for long-term survival that involves something other than selling off non-core assets (eventually, it will run out of these).

In our opinion, this plan will need to involve a major restructuring, including a reduction in the size of the company’s editorial operation by at least 40% (and, eventually, more, as the print business wanes).  Based on NYTCo’s response to the crisis to date, however, we suspect management will continue to hope for a miracle.

Keep an eye on:

  • Madonna’s “Sticky & Sweet” concert tour was the biggest-grossing music tour of 2008 in North America, raking in $105.3 million, concert tracking magazine Pollstar said (Reuters).
  • In a tough year for media, one mogul, John Malone, appears to have salvaged some semblance of value for his shareholders at the expense of another mogul’s shareholders ( via NYTimes)
  • NBC, mired in fourth place in prime time, heads into the final days of 2008 with ratings leads for its morning and evening newscasts (Hollywood Reporter)

(Photo: Reuters)


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Immediate cash that New York Times need,can be retrieved from the selling of Boston Globe and the stake on Red Sox.The huge cash could be converted into a potential business by restructuring the different segments of this great concern. By breaching inflated part of different sections,would render a cost-effective management values.Dominated recurring expanses would contribute higher growth in terms of achieving handy profit.

Posted by PRANAB HAZRA | Report as abusive

the new york times is sadly confused by the bubble it lives in.irrespective of a persons political stance if the news was reasonably balanced them moderate conservatives like myself would probably read it. because of it,s obvious preference for propaganda it loses any creditability.
any resemblance of impartiality or any interest of being purveyors the news is gone, like wise it,s longevity.

Posted by brian lee | Report as abusive