The New York Times threatens to close Boston Globe
Apr 4th 2009 7:00AM
Updated Dec 4th 2009 1:19PM
The New York Times Company (NYT) has done everything from mortgage part of its headquarters to cutting its dividend to zero. Some analysts thought that those actions would buy it time to recover from the sharp drop in advertising revenue which was threatening to drive the company to a loss.
But, the actions were apparently not enough. The Times now says it might close The Boston Globe, one of the largest and most respected dailies in America. Rumors are that the paper is losing $1 million a month.
According to Boston.com, "The New York Times Co. has threatened to shut the Boston Globe unless the newspaper's unions swiftly agree to $20 million in concessions, union leaders said."
The large daily would be the next in a long line of papers including The Rocky Mountain News and the Seattle Post-Intelligencer that have closed. Hearst has also threatened to close The San Francisco Chronicle.
For shareholders, it indicates that NYT is worse off than might have been expected.
Douglas A. McIntyre is an editor at 24/7 Wall St.