WASHINGTON (AFP) — The New York Times Co., strapped for cash and facing shrinking revenue, is reportedly seeking to sell its stake in the Boston Red Sox baseball team.
The New York Times newspaper, citing "a person briefed on the plans," reported this week that the Times Co. is "actively shopping" the company's 17.5 percent stake in New England Sports Ventures (NESV), which owns the Red Sox.
Besides the popular Major League baseball team, NESV also owns their iconic stadium, Fenway Park, and 80 percent of the cable television channel which airs their games, the New England Sports Network.
The Times purchased the stake in 2002 for 75 million dollars.
Citing "two people familiar with the discussions," The Wall Street Journal reported on Friday that the Times had indicated its willingness to sell at a meeting of NESV's limited partners last month.
The newspaper said Barclays Capital has pegged the value of the stake at about 166 million dollars.
The Journal said the Times was seeking 300 million dollars for the stake in the Red Sox, one of the most valuable teams in the Major Leagues after winning the World Series twice since 2004.
Besides the flagship New York Times, the New York Times Co. also owns the International Herald Tribune, The Boston Globe, 16 other daily newspapers and other properties.
The Times has not been spared the crisis gripping the US newspaper industry and reported this week that both print and online advertising revenue dropped in November.
The Times said total company revenue fell 13.9 percent in November compared with the same month a year ago while advertising revenue was down 20.9 percent.
The company also has a 400-million-dollar revolving line of credit set to expire in May and it announced earlier this month that it will borrow as much as 225 million dollars against its new headquarters building in Manhattan.
Standard & Poor's recently downgraded the credit rating on the Times Co. to below investment grade, and Moody's Investors Service has said it may do the same.
Times Co. stock has lost more than half its value this year.
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