Investor group seeking to buy Boston Globe from Times Co
A group of investors is seeking to buy The Boston Globe from its owner, The New York Times Co., which tried unsuccessfully to sell the struggling newspaper last year, the Globe reported Wednesday.
The Globe said the group of more than a dozen investors and management specialists known as the "2100 Trust" was led by Aaron Kushner, owner of a greeting card company.
The Globe said the 2100 Trust was interested in acquiring the entire New England Media Group unit, which includes the Boston Globe, Boston.com, and a central Massachusetts newspaper, the Worcester Telegram & Gazette.
Kushner, in an interview with the Globe, declined to name a purchase price.
"We are putting together the business model of taking what is an important community organization and reverse the cycle and have it growing," he said.
"If the Globe was achieving even half its potential, it would be of much greater import and impact," Kushner said.
The Times Co., whose holdings include The New York Times and International Herald Tribune in addition to The Boston Globe, sought a buyer for the Globe last year but failed to receive bids attractive enough to merit a sale.
A Times Co. spokeswoman, Abbe Serphos, told the Globe the company does "not comment on rumors of acquisitions or divestures.
"The Boston Globe is an important part of The New York Times Company," she added. "The Globe has made excellent progress and is on solid financial footing. Its continued digital and print progress signals a strong future."
The Times Co. bought the Boston Globe for 1.1 billion dollars in 1993 but the value of the newspaper has plummeted since then, along with the fortunes of the US newspaper industry.
Like other US newspapers, the Globe has been grappling with a steep drop in print advertising revenue, steadily declining circulation and the migration of readers to free news online.
The Times Co. purchased the Worcester Telegram & Gazette for 295 million dollars in 2000.
In a statement, the 2100 Trust said The Boston Globe has been "a pillar in the city, the Commonwealth and the region for more than a century.
"We believe that The Boston Globe's strongest days can be ahead. This will require the significant long-term investment that we intend to make," it said.
"One of the principal areas of investment will be the newsroom, which is due for a significant increase," the 2100 Trust added.
(c) 2010 AFP