The Money Man Behind Rick Santorum: Who Is Foster S. Friess?
Savings Experiment: Snow RemovalThe 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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Reader Comments (Page 1 of 1)
11-21-2008 @ 10:20AM
Meggawhats said...
What you Liberal Papers did to the
Republican Party this election will come
back to haunt you financially. We will
no longer buy your newspapers.
11-21-2008 @ 11:59AM
jac said...
you help a fool win the presidency and your taking the Big hit for your lack of true reporting and not REPORTING ! HAHA
11-21-2008 @ 12:02PM
the Sulzberger family said...
the Sulzberger family , no its Sleezeburger ! what a waste of trees and ink , you loose baby !
11-21-2008 @ 1:06PM
charlie said...
The NYT called me at home in mississippi asking if i wanted to subscribe. I told them i had enough used towlet paper and didn;t need their bias rag.
11-21-2008 @ 12:26PM
Nick said...
You simply can't dish on a considerable part of the public and expect them to buy your product. If the reporting had been balanced and complete they would be in better shape. Bias and insulting reporting plus the market may end this disgrace to journalistic professions. Social rule is if a business is no longer need it fails. Blacksmith ring a bell?
11-24-2008 @ 4:27PM
fraidsojan said...
You fools. The revenue this refers to is advertising revenue. Not circulation, which is only a small part of how a newspaper makes money. Nov 4 and 5 were huge days for NYT and newspapers in general as the public sought to commemorate this historical election with a keepsake copy of the paper. Inauguration Day will be the same. Newspapers and The NYT are far from dead. Sorry to disappoint you all.
12-09-2008 @ 4:44PM
carol said...
I can,t believe the Sulzberger family won,t sell the new york times for the shareholders, Letting the company go bankrupt, is OK for them, They take control of the company in chapter 11, share holders get nothing, My shares have lost 70% of their value, I payed $24.00 a share, I will never buy a company again where, One family owns most of the shares, The large institutions, And Mexico needs to try to get shareholders to participate, In the decision, Shame on this family. how can they sleep at night, knowing what they are doing to the shareholders of this company, Sell the Boston Globe now, It has been loosing money for ever, this might help some, A concerned share holder,
12-21-2008 @ 4:42AM
pam said...
The paper is a rag anyway. Would not buy it if it were yhe last paper on earth! You reap what you sew!!
12-23-2008 @ 2:09AM
texisking said...
Fraidsojan's remarks calling people fools is stupid. It is just the opposite from what he/she/it states. Advertising is the lifeblood of newspapers and without the circulation figures to show advertisers they will not pay high prices to advertise and eventually will not pay at all.
To see the NYTimes and the Selzberger family be out of the newspaper business will be fantastic. If it is bought and not put in Chapter 7 we can only hope the rotten press that writes the opinion columns and the editorial staff are gone for good from the newspaper business.