The New York Times looks like takeover bait
Commentary: New York Times Co., Gannett report discouraging results
By MarketWatch June 18, 2008
marketwatch.com{B67124D0-AF26-4C40-8AC4-BB1633635B2B}&siteid=yhoof
NEW YORK (MarketWatch) -- The New York Times Co., looking like a company poised to be regarded as takeover bait, reported discouraging news on Wednesday.
Already reeling from a prolonged advertising slump, the Times (NYT) said it had an 11.9% decline in ad sales, overshadowing a slight increase in its circulation revenue.
Meanwhile, Gannett (GCI:) , the publisher of USA Today, said its May ad revenue had dropped 14% from a year ago. Its classified ad figure fell 19% for the month, underscoring the impact of online services.
The Times has long frustrated investors. It is committed to succeeding on the Internet, and it has a well regarded Web site. Still, the company is having a hard time convincing Wall Street that it's well positioned to be a strong investment.
I suspect that if the Times can't turn itself around -- and soon -- the company will start to become the subject of widespread takeover talk. The company, which has made such well-publicized miscalculations as acquiring the Boston Globe, is controlled by the Sulzberger family so a takeover would be a difficult proposition for a suitor.
But if things go from bad to worse, anything is possible.
-- Jon Friedman
|
