While The New York Times Co. plays down rumors of a possible buyout prompted by its poor earnings, maybe the whole company isn't in play, but its most troubled part, The Boston Globe, should be.
The Boston broadsheet has seen its advertising revenue go into a tailspin. A number of factors have converged to turn the once profitable paper into a loser. Over the last five years, Boston has watched its corporate institutions disappear as outsiders acquire them. FleetBoston Financial was bought by Bank of America, John Hancock Financial Services Inc. was bought by Manulife Financial Corp., and Gillette was bought by Procter & Gamble. Consequently, the city's economic structure was forced to change as noted by The Deal's Matt Miller in a cover story from April 2005. Rather than relying upon a few corporate giants for much of its jobs, now the region relies upon more entrepreneurial institutions. These smaller, tech-centric companies are less likely to post job listings in The Globe opting instead for online listing services.
In addition, a story in today's Wall Street Journal about The Globe's troubles highlights the fact that 76% of Boston-area residents have high-speed Internet connections at home. These tech savvy consumers are opting to not only search for jobs online, but are also looking for news and information online. While many may visit The Globe's Web site, Boston.com, unfortunately increases in online ads aren't offsetting the losses of print ads.
So who would buy a paper in decline? Perhaps a publisher who puts an emphasis on online ventures. For example, McClatchy has made localized search a focal point of its online paper ventures. Another might be Advanced Publishing, who manages a number of award winning newspaper sites like NOLA.com, the online home of The New Orleans Times-Picayune. Of course, considering The Globes' current circumstance, The Times isn't likely to get anywhere near the $1.1 billion it paid in 1993. —Matthew Wurtzel
See story about NY Times earnings from The Wall Street Journal (subscription required)
See story about NY Times earnings from The Street
See blog post about NY Times earnings from The American Thinker blog
See related story about Boston from The Deal
Continue reading below
