Paper, once purchased for $1.1 billion, goes for $70 million
The New York Times announced today (Saturday, Aug.3) that it has sold the Boston Globe and other New England media properties to John W. Henry, principal owner of the Boston Red Sox. Henry paid $70 million. The Times had bought it in 1993 for $1.1 billion. This kind of a haircut is in line with the plunge in value of other daily newpaper properties. The times noted that last year, Philadelphia newspapers sold for $55 million, after selling for $515 million in 2006. The Times noted this morning that San Diego's Papa Doug Manchester had expressed interest in buying the Globe. On July 23, John Lynch, chief executive of Manchester's U-T San Diego, told an audience in Allied Gardens that the U-T owner was a finalist to buy the Globe. The decline in value of the U-T was in line with the drop of the Globe. About four years after the paper itself -- not the Copley chain -- was valued at $1 billion, it sold for a bit more than $50 million. Manchester then bought it for a reported price of $110 million -- a high price if he actually paid it.