The next step remains uncertain for what will go down in history as among the worst newspaper acquisitions.
On Friday, the deadline for submitting bids for the Boston Globe, which is owned by The New York Times Company (NYSE: NYT), passed. Two major contenders were expected to write figures on slips of paper and slide them across the proverbial desk: Platinum Equity, a Beverly Hills-based private equity firm and owner of the San Diego Union-Tribune, and Stephen E. Taylor, whose family sold the Globe in 1993.
Both parties made initial bids of around $35 million, along with the assumption of $59 million in pension obligations. The pension obligation may be higher than thought earlier, because of an error, but reports suggest that the change is not significant. Whether the new bids filed for Friday's deadline differ substantially from earlier bids or from each other remains uncertain. The language of the offers, however, is said to be as much a differentiator as the financial terms.
Ultimately, a tie would favor Taylor's group, according to speculation. Taylor is a former executive at the Globe, and his cousin, Benjamin Taylor, is both a former publisher and a member of the bidding team -- which is packed with other ex-Globers. In the newspaper business, the sentimental favorite has the edge, especially since most interested parties are focused on saving the Globe rather than making it profitable, which of course, is one of the most vexing problems in the newspaper industry.
The buyer of the Globe would also pick up The Worcester Telegram & Gazette, which is being sold along with its metropolitan neighbor. Goldman Sachs (NYSE: GS) is taking care of the sale for the New York Times Co., which bought the Globe for $1.1 billion just in time to see its value plummet.
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