Rupert Murdoch, CEO of News Corp (NYSE: NWS) and king of all he surveys, wants to buy The New York Times. At least that is what he told Vanity Fair according to a Reuters report.
It is hard to see why Murdoch would even bother to dream that dream. Based on the most recent quarterly earnings report and monthly figures reported by The New York Times Co. (NYSE: NYT), the paper probably loses money when the results of its online business are backed out. If ad lineage at the print product keeps falling, and it will, even NYTimes.com will not be able to save the bottom line.
While The New York Times is a trophy, it would almost certainly be an expensive one. The parent company has a market cap of about $2 billion, and the paper might go for more than that because of its unique position as the most respected news outlet in the US.
Murdoch is probably already struggling with The Wall Street Journal. He has to be. Newspaper ad revenue is simply dropping too fast for the Journal to be immune.
Owning another paper is just asking for more losses which would need to be offset by other businesses at News Corp.
Douglas A. McIntyre is an editor at 247wallst.com.
Struggling Playboy outsources business ops
J. Crew earnings preview: A strong Q3 all buttoned up?
Twitter to make acquisitions, generate revenue in 2010
Reader Comments (Page 1 of 1)
9-03-2008 @ 9:27AM
Mike O said...
But Rupert wants to destroy media and use it to push his right-wing views. Killing the NY Times, er "remaking it" to suit his views is the ultimate goal.
If he tried to acquire it, I think regulators would jump all over it and kill the deal.
9-03-2008 @ 11:16AM
Dan Barnett said...
Serious problems with owning both NY Times & NY Post. Aslo givren Murdoch's reputation, will the Sultzberger family sell the Times to him? He could throw enough zeros to get Dow Jones & WSJ but the Times may be a different story.
9-03-2008 @ 5:20PM
Helen said...
Fair and balanced is a joke. If The New York Times is bought by him, you might as well move to another country. That would be the only way you would get to know what is really going on in this country.
9-07-2008 @ 9:26AM
Sophia said...
It's about time some balance be brought to the NY times. This cesspool of misinformation and disgraceful journalism needs a course change. What was once the most respected paper in the World is now regarded in the same light as the National Enquirer. Objective journalism has been replaced with blatant agenda driving.