The front of The Boston Globe reads "Times Co. seeks Globe bids." Apparently, two people that made bids for the Globe said the New York Times Co. (NYSE:NYT) hired Goldman, Sachs & Co. -- the same bank it hired to sell its 17.5% stake in the Boston Red Sox --
to field bids.
With newspapers facing a one-two punch of readers finding free aggregated content online and a recession pulling out even more advertisers and customers, cost cutting is a must.
Last year the Globe lost about $50 million and could lose around $80 million to $90 million this year. Unions for the Globe approved $10 million in concessions Times Co. called for but did not approve another $10 million in
pay cuts with a
vote count of 265 in favor and 277 against.
With the largest union rejecting concessions, The Wall Street Journals notes Times Co. could make good on its
threat to shut down the 137-year-old Globe. Union leaders have threatened legal action to block the cut as well.
Our sister blog Dealscape opines that
the Globe isn't alone: Late last year, The Newark Star-Ledger averted a closure as its unions gave into owner Advanced Publishing Corp.'s demands for concessions and Hearst Corp. shuttered the Seattle Post-Intelligencer print edition but continued with SeattlePI.com. -
Baz HiralalGo to Boston Globe storyGlobe reporters make plea for mercy
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