The battered Boston Globe isn't worth 90% of what the NY Times Co. (NYSE: NYT) paid for it, but it seems to have bounced a bit from the bottom of the barrel. In a meeting with a few hundred of the newspaper's employees, company chairman Arthur Sulzberger Jr. and CEO Janet Robinson revealed that the Globe's finances have improved significantly. Because of this development, they continued, there is a chance the newspaper will not be sold.
This was the first meeting between company executives and the Globe's unions since the latter accepted pay cuts back in July. The newspaper, which has a 137-year history, lost $50 million in 2008 and looked like it was going to drop another $85 million this year. Though this no longer appears likely, the Globe is still in rough shape.
Sulzberger hasn't ruled out a sale, but he has said that the company is not in a position where it must divest the Globe, but it is still accepting bids. He continued that, in addition to the size of the offer, the impact on the newspaper's content and readers would influence the decision.
This is the sort of thinking that has turned the NY Times Co. into a laggard even by newspaper industry standards. Sulzberger seems committed to not letting finances influence his decision -- which is probably why he bought the Globe. At least he didn't apologize for seeking concessions from the employees. The newspaper has been hanging on by a thread, and deep cuts are what have extended its life.
From the employee side, the discussion was called "civil," Scott Allen, a Globe reporter, was quoted as saying in USA Today. He also indicated that the meeting should have been held months ago. Of course, this hints at the fact that the Globe thinks a bit more highly of itself than it should.
After all, circulation has plunged, but not nearly as fast as the newspaper's value, which has shed around $1 billion since the NY Times Co. purchased it only a few years ago. And, the Globe would have been sold already if Sulzberger could have found a buyer. If the Globe takes the recent meeting as a vote of confidence, more than a few heads should be examined.
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