According to Boston Globe columnist Robert Gavin, a team of investors and management specialists are prepared to make a bid to purchase The Globe from The New York Times Co. Yesterday Wellesley, MA entrepreneur Aaron Kushner announced that his group, the 2100 Trust, will soon propose an offer to acquire The Boston Globe, Boston.com, and Worcester Telegram & Gazette — all properties of The Times Co.’s New England Media Group.
The Times Co. bought The Boston Globe in 1993 for $1.1 billion. Following a year scouting for potential buyers, the company pulled the paper off the market after receiving bids of roughly $35 million. After hearing that low-ball offer, many would be led to believe The Boston Globe has been a bad investment, however a statement released by The Times Co. spokeswoman Abbe Serphos may cause you to think otherwise:
“We do not comment on rumors of acquisitions or divestitures. The Boston Globe is an important part of The New York Times Company. The Globe has made excellent progress and is on solid financial footing. Its continued digital and print progress signals a strong future.”
Last year the Times Co. nearly shut down The Globe but were able to make enough adjustments in management salaries and benefits to keep the paper afloat. Although the New England Media Group’s total revenue dropped 6.2 percent during the third quarter, the decline is not nearly as steep as the double-digit losses witnessed in 2009. Profits from the potential Globe sale could benefit The Times Co. following a third quarter marked by losses in both print ad and circulation revenues for the company’s flagship paper, The New York Times.
Although they have no response to Kushner’s advances and have not actually put The Globe up for sale, the Times Co. should probably send a thank you card to the Massachusetts native. According to Bloomberg.com, shares in the Times Co. rose by up to 10 percent in late trading following the 2100 Trust’s announcement.