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.

Yesterday the New York Times (NYSE: NYT) suspended its dividend, following other struggling newspaper giants like McClatchy in a desperate move to save cash amidst the Perfect Storm buffeting their industry. A deep recession, sinking paid subscription rolls, and crashing classified and display ad sales caused by competition with the Internet have all conspired to put the entire newspaper business on life support far faster than almost anyone imagined possible.

A number of financial bloggers and technology titans are now saying the Times won't survive the year. Even after suspending the dividend, NYT will struggle to be cash-flow positive, particularly considering it has to service a crushing 14% interest burden on the recent Hail Mary $250 million loan package from Mexican billionaire Carlos Slim Helu.

The Wall Street Journal reports (subscription required) on speculation that Mexican billionaire Carlos Slim may provide The New York Times Co. (NYSE: NYT) with some much-needed cash.

Mr. Slim disclosed a 6.4% stake in the company back in September, but the stock has taken a beating since then. The company is looking desperately to raise cash with a sale and lease-back of part of its headquarters and "various other financing alternatives," including "private placements."

But the Journal notes that "The big question is whether Mr. Slim would demand some degree of control for an infusion. The next question then would be the response of the fractious Sulzberger family."

Here's my take on it: Slim would have to be absolutely mental to toss another hundred million dollars or more into a company with a history of terrible shareholder returns without demanding that the Sulzberger family give up their total control of the company's destiny.

A New York Times Co. controlled freely by its shareholders would be good news for the company and its investors. The Sulzberger family has never demonstrated a willingness to let outsiders have a say in the company's future, but at this point they may not have much of a choice. The question is whether it's too late for new leadership to make a difference.

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.