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Big trouble at The New York Times Company (NYT)

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The New York Times (NYSE: NYT) reported that its October revenue got beat up again. If anything, it was worse than some previous months this year, but it's papers are caught in the vortex of a failing industry. For the month, advertising revenue was down 16.2%. Internet revenue only rose in the single digits, so online sales are not going to save the company.

In an odd way, the drop in revenue was the relative good news because the company also cut its dividend by a very large amount. The payout was cut by 74% to $0.06 per share. To make matters worse, the stock sold off 10% to a 52-week low of $5.72.

NYT has debt that is due next year. Its papers in New England, led by the Boston Globe, are losing as much as 20% of their ad revenue each month.

The company is controlled by the Sulzberger family, which has been in charge for over a century. One of the reasons the brothers and sisters, aunt and cousins have supported management was for the rich payout they received each quarter. Now, that is going away.

With an unhappy family, the company may be in play. Perhaps Rupert Murdock might buy it. NYT would make a nice bookend for The Wall Street Journal.

Douglas A. McIntyre is an editor at 247wallst.com.

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Last updated: July 04, 2009: 11:11 AM

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