The Deal: New York Times Sells Boston Globe to Red Sox Owner
NEW YORK (The Deal) -- The New York Times Co.
The $70 million in cash that prominent Bostonian John W. Henry has agreed to pay for the group, featuring The Boston Globe, compares to a $1.1 billion purchase price for the Globe alone in 1993. However, on returning to local ownership, the group today not only includes New England's paper of record but also BostonGlobe.com, Boston.com, Worcester Telegram & Gazette, Telegram.com, direct-marketing unit GlobeDirect and a 49% interest in Metro Boston.
Henry, winner of the five-month auction managed by Evercore Partners
It's as an individual, though, that media neophyte Henry assumes Globe ownership. His majority-controlled NESN elected not to participate in the auction's final round, thus adding to a significant amount of churn among such suitors as former Time Inc. CEO Jack Griffin, family members of the Globe's former owner and local businessmen Jack Connors, John Fish and Steve Weiner.
On designating Henry as the auction's winner, the Times' president and CEO Mark Thompson cited "strong local roots and a deep appreciation of the importance of these publications to the Greater Boston community." He also noted that the sale would allow the Times "to sharpen our company focus on and investments in The New York Times brand and its journalism."
Written by Richard Morgan.