http://online.wsj.com/article/SB10001424...sNewsCollectionNew York Times Co. has struck a deal to sell the Boston Globe to John Henry, the principal owner of the Red Sox.
The sale, a cash deal for $70 million announced in the early hours of Saturday morning, is the latest step by the publisher to shed assets unrelated to its namesake newspaper, as it grapples with years of steadily declining print advertising that has devastated the newspaper industry generally. In addition to the Globe, the deal includes other assets in Times Co.'s New England Media Group, such as Boston.com, the Worcester Telegram & Gazette and other media properties.
In a news release, Times Co. CEO Mark Thompson said that "as a result of this agreement, we will be able to sharpen our company focus on and investments in The New York Times brand and its journalism."
Mr. Henry made his fortune trading commodities and currencies although last year, after suffering slumping returns, told clients the firm would stop managing their money. Fenway Sports Group, the parent company that houses his sports interests, also owns the Red Sox's historic ballpark, Fenway Park, and Premier League stalwart Liverpool Football Club.
Times Co. in February hired Evercore Partners to advise on sale of the Globe and other assets in the New England Media Group.
The sale price is a far cry from the $1.1 billion that the Times Co. paid for the newspaper when it bought it 20 years ago. Prospects for the newspaper business have declined sharply in that period as advertisers and readers turn to lower margin digital ads and editions. New England Media Group reported a 7.4% revenue decline for the second quarter, with ad revenue dropping 9.5%.
The New York Times Company has been steadily shedding assets for the past year and a half, selling off About.com, its local television stations, and its stake in the Fenway Sports Group, which owns the Boston Red Sox. It is now focusing on growing its namesake paper by boosting circulation revenue and with plans to expand internationally and introduce content at different price levels.
