Top executives from The Boston Globe’s parent company have told employees that the newspaper is on a path to profitability as a result of pay cuts and price increases that took effect over the summer. During two sessions at the Globe’s offices, New York Times chairman Arthur Sulzberger Jr. and chief executive Janet L. Robinson thanked employees for their sacrifices and stressed that the improved financial conditions meant the company does not need to sell the paper if offers are not satisfactory, said a report in The Boston Globe. The company confirmed in August it had hired investment banker Goldman Sachs to help explore a sale of the New England Media Group, which includes the Globe and the Worcester Telegram & Gazette. Sulzberger said Times has received preliminary bids and would begin taking prospective buyers through the Globe and the Telegram & Gazette properties over the next couple of days. “Our hand is not being forced,’’ he said. “We are not in a situation where we must absolutely sell the Globe or the Worcester Telegram & Gazette for the good of the company.’’ During the meeting, employees asked if price alone would determine the sale of the paper, focusing their concerns on one of the reported bidders, Platinum Equity, a California investment firm. Platinum bought the San Diego Union earlier this year and swiftly cut about one-fifth of the newspaper’s staff. Sulzberger said a decision on the sale would hinge on several factors, including the price and the impact of a sale on the Globe’s journalism, its readers, and the Greater Boston community. Globe publisher P. Steven Ainsley, meanwhile, said the paper’s executives also hoped to decide on a new strategy on whether and how to charge for access to content on the website by year’s end. He said possible scenarios include putting the website behind a pay wall, but such a move would have to balance the potential for increased revenue against a potential loss of visitors if the site were no longer free.
Boston Globe Edges Towards Profitability, CEO Praises Employees
New York Times chairman Arthur Sulzberger Jr. and chief executive Janet L. Robinson thanked employees for their sacrifices and stressed that the improved financial conditions meant the company does not need to sell the paper if offers are not satisfactory.
September 10, 2009