Red Sox Owner to Buy Boston Globe for $70 Million

FILE - In this July 20, 2009 file photo, a security guard walks past the entrance of The Boston Globe building in the Dorchester neighborhood of Boston. The New York Times Company, which owns The Globe, announced Wednesday, Feb. 20, 2013, that it has put The Globe up for sale. (AP Photo/Charles Krupa, File)
AP file, Charles Krupa
BOSTON -- Businessman John Henry, the principal owner of the Boston Red Sox, has entered into an agreement to buy The Boston Globe for $70 million, a massive drop from its record $1.1 billion price two decades ago.

The impending purchase from The New York Times Co. marks Henry's "first foray into the financially unsettled world of the news media," the Globe said Saturday. The deal will give Henry the 141-year-old newspaper, its websites and affiliated companies, it said.

The Times announced in February it was putting the Globe and related assets up for sale four years after calling off a previous attempt to sell it. The company's CEO said at the time selling the Globe would help the company focus attention on The New York Times brand.

FILE - Boston Red Sox owner John Henry stands on the field before a baseball game in Boston, in this May 11, 2013 file photo. The principal owner of the Boston Red Sox has entered into an agreement to buy The Boston Globe. The Globe says the impending purchase marks businessman John Henry's
AP file, Michael DwyerBoston Red Sox owner John Henry
Times spokeswoman Eileen Murphy confirmed the planned sale of the Globe and other media properties to Henry. The Times said the all-cash sale, expected to close in 30 to 60 days, includes BostonGlobe.com, Boston.com, The Worcester Telegram & Gazette, Telegram.com, the direct mail marketing company Globe Direct and the company's 49 percent interest in Metro Boston, a free daily newspaper for commuters.

Henry, in a statement published by the Globe, cited the "essential role that its journalists and employees play in Boston, throughout New England, and beyond."

"The Boston Globe's award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country," Henry said.
Henry, who also owns the English Premier League soccer club Liverpool F.C., said he would reveal details about his plans for the Globe in the next few days.

Globe editor Brian McGrory said the newspaper's Red Sox coverage and its editorial decisions won't be affected by the sale.

"We have no plans whatsoever to change our Red Sox coverage specifically, or our sports coverage in general, nor will we be asked," McGrory told the newspaper. "The Globe's sports reporting and commentary is the gold standard in the industry."

The Times bought the Globe from the family of former Globe executive Stephen Taylor in 1993 for what it said was the highest price paid for an American newspaper. The price Henry is paying is less than 7 percent of the 1993 price.

The Globe and other newspapers have faced difficulties in recent years as readers have fled to the Internet and advertisers have cut spending on newspapers and moved more ads online. Still, the Globe is a journalistic institution in New England and was lauded for its coverage of the deadly Boston Marathon bombings in April.

A 2009 round of cost-cutting, involving pay cuts, helped put the Globe on better financial footing and prompted the Times to call off a planned sale. In late 2011, the Globe started charging for access to its online version at BostonGlobe.com, which helped to boost circulation revenues.

The Times company doesn't separate Globe revenue from The New York Times revenue in its financial statements. But the Globe had an average weekday circulation of 230,351 in the six months through September, according to the Alliance for Audited Media. The newspaper's increase in digital subscriptions more than offset declines in print. But the total is still down significantly from the nearly 413,000 it boasted in September 2002.

The Globe isn't the only newspaper to see a huge drop in its price at sale time.

In April 2012, Philadelphia's two largest newspapers sold for $55 million, a fraction of the $515 million paid by a group of investors in 2006. The buyers of the Philadelphia Inquirer and Philadelphia Daily News included influential New Jersey Democrat George Norcross III, former New Jersey Nets owner Lewis Katz and cable TV mogul H.F. "Gerry" Lenfest.

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oldsub571

With a little luck the NY edition of the NY Times will once
again become The BOSTON Globe!

August 04 2013 at 9:10 PM Report abuse rate up rate down Reply
Thrift Store

Back when Taylor was the publisher I had the greatest repect for the Globe ( Family retired well off from there) But since the Times bought it I lost all respect

August 04 2013 at 7:50 PM Report abuse rate up rate down Reply
jcigars

The Globe is only worth 7 million. Liberal newpapers are more and more irreleveant

August 04 2013 at 7:37 PM Report abuse rate up rate down Reply
FJoachim

Now if Murdoch would buy the Los Angeles Times we could get a balanced approach to the news.

August 04 2013 at 12:55 PM Report abuse rate up rate down Reply
doncinnh

Finally - Get rid of the NY Liberal crap that killed the Globe. We are tired of its liberal suck up to the Dems and their agenda. I stopped subscribinig to this paper 15 years ago and it continue to go down hill. It is a shell of its former self when the Taylors owned it.
I only hope that John Henry has a more balance approach to reporting news.

August 04 2013 at 12:41 PM Report abuse rate up rate down Reply
geezerearl

Shows you how revelvant print media is in todays society. Could have
probably hardballed NYT into an even lower price.

August 04 2013 at 4:40 AM Report abuse rate up rate down Reply
vincear

Maybe the new owner will hire real journalists.Get rid of all the deadwood that is there no.

August 03 2013 at 9:19 PM Report abuse rate up rate down Reply
cla.connie

The day the N. Y Times dies will be a good day for America. It is good to see they had to take a huge loss on this transaction.

August 03 2013 at 8:46 PM Report abuse rate up rate down Reply
1 reply to cla.connie's comment
jpark377

Didn't the Times have to borrow $ from a loan shark in South America to remain operating a few years back?

August 03 2013 at 9:44 PM Report abuse rate up rate down Reply
rjen164497

WHY? All newspapes today, like all media can't be trusted to give news only. All media has become bias, slants news, omits news, and has lost the trust of Americans. The minute there is an elections or a congressional bill, Media voices, and votes their prejudice. It would be refreshing and would sell if someone would just give the story and all facts only.

August 03 2013 at 6:38 PM Report abuse +1 rate up rate down Reply
1 reply to rjen164497's comment
jpark377

The print media lied and manipulated news stories 20 years ago, but were able to turn incredible profits. It's not about honesty in the media: it's about a structural change in the news industry that's a result of the way people choose to receive their news nowadays. The Boston Globe cannot make money as a newspaper: there are not enough readers, and certainly not enough advertisers.

August 03 2013 at 9:42 PM Report abuse rate up rate down Reply
joezeppi59

Bought for $1.1 billion, sold for less than $0.1 billion... and I thought I lost money on my condo lol

August 03 2013 at 3:35 PM Report abuse rate up rate down Reply