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But the possibility of this dream hookup is just fantasy because the owners of the Times -- the Sulzberger family -- for now, seem emboldened to hold on to the company for as long as it can. The Sulzbergers, however, are living on borrowed time as the family is facing pressure on all fronts to save the company, which is hemorrhaging as the slow economy has decimated its advertising and subscription revenue. Already, the media company took the extreme move of borrowing $250 million from their newly built headquarters (pictured), but that seems to be a temporary band-aid on what very well could be a mortal wound. Meanwhile, a growing disgruntled faction of shareholders (earlier in the year the company acquiesced to adding board members from a group of activist hedge funds) could be so dissatisfied with the founding family that it might force a hostile takeover. The only question about that scenario is the Sulzbergers do hold the upper hand with a majority of Class B voting shares. But the stage seems to be set for some kind of restructuring at the company that could include a merger, and some suggest why not with the deep-pocketed Internet giant Google. For one, John Ellis at RealClear Markets said earlier this year the Sulzbergers would run into the arms of Google to avoid any takeover from Rupert Murdoch, who reportedly covets the Times. Meanwhile, cash-flush Google reportedly would be able to scoop up the Times, which includes prime New York real estate, for $4 billion or possibly less in this declining market. Ellis argues the addition would make sense for Google because it would be able to "make money repurposing the cultural and culinary coverage, to pick just
two categories, of the New York Times, across both its Internet and
mobile platforms." The pros for a deal could go on and on, but the only thing that matters, right now is that the ball is in the Sulzbergers' court, and they still want to try to stay in the game. The only problem with that strategy, like the Tribune Co., they could end up losing in the end. - Gerald Magpily See SpliceToday article CategoriesComments
From: Buckley Krumperman,
Nigel Eccles commented: "Why on earth would Google want to buy into that?" For control of the NYT online properties which potentially are worth several billion. Control of the NYT tech reporting is the big battleground. Microsoft would surely be interested.
Posted on:
December 12, 2008 12:51 PM
From: da,
google acquiring nytimes makes absolutely no sense. no strategic value whatsoever. would be a horrible waste of money. it will never happen.
Posted on:
December 12, 2008 2:27 PM
From: modelportfolio2003,
No chance. Remember what Google is all about----3 concepts: search, applications and software. Definitely not content. It aggregates others content.....just look at Google News. Buying a content provider like the New York Times, regardless of how venerable the name, would be competing with its client base ----and that Google has no interest in doing. modelportfolio2003
Posted on:
December 12, 2008 6:27 PM
From: WannaDevelop.com,
Google doesn't need the NYT, and this rumors... Well... Doubt anything will happen when all said and done ;)
Posted on:
December 14, 2008 5:53 AM
From: Thomas Chisler,
Uh, guys, you totally missed the point. "3 concepts" huh ? It's only 1 concept: Advertising. Google is not a search engine nor a software company. They are only interested in your clicking on their links and such. As for acquiring NYT: It's an "almighty" media character, but.. with no money. It would be an interesting step in widening Google's advertising portfolio though.. P.S.: The Microsoft is an old software company, why on earth would especially they interested in a newspaper ? I don't think so. P.P.S: this is only a rumor, The Lebanese Central Bank has money, what about their merger ?? Anyone who got money these days would buy NYT ? Someone should buy it but don't go throwing strange ideas at everyone...
Posted on:
December 15, 2008 12:50 AM
From: Pramit Singh,
I gave 7 reasons why Google should buy The New York Times on the Mediavidea blog back in October 2006. Can check it out here.
Posted on:
December 19, 2008 12:46 PM
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As the New York Times Co. is negotiating with lenders over its debt, speculation has been floating around the blogosphere, pushing the premise that Google Inc. should acquire the beleaguered Gray Lady. The thesis (or, rumor, as some would put it) has been around since the beginning of the year, with SpliceToday on Thursday reintroducing the idea of the unorthodox union of the stalwart of old media with the scion of new media. 
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This 'rumor' has no more logic than (a) Google has money, (b) NYT needs money and (c) they are in similar businesses, therefore Google will buy NYT. The vast majority of NYT's revenues still come from print which is in terminal decline. Why on earth would Google want to buy into that?