The New York Times Company has decided to sell the New England Media Group, which includes The Boston Globe, boston.com, and the Worcester Telegram & Gazette. The new CEO, Mark Thompson, is developing a strategy to steer the company towards technology including social media, video, and mobile devices.
Thompson stated, “Our plan to sell the New England Media Group demonstrates our commitment to concentrate our strategic focus and investment on The New York Times brand and its journalism.” Since technology is becoming more mainstream and advanced this seems like a logical decision.
The Times Co. acquired The Boston Globe in 1993 for $1.1 billion and they may be able to sell it for $150 to $175 million. The company tried to sell The Globe in 2009 but plans fell through because of employee pension obligations.
Classified ad sales are the main source of revenue for newspapers and national newspaper ad sales declined 10% in the first nine months of last year. Since The Times is steering towards the digital realm the paper is generating more money from readers than from ads. (time.com)