NY Times considers the Boston Globe’s future
As the New York Times mulls over the future of the Boston Globe, which it purchased 16 years ago, Ken Doctor from PaidContent and formerly of newspaper and media giant Knight Ridder considers the question: ‘how much is the Boston Globe worth?‘ and has an interesting take:
The New York Times’ David Carr asked six analysts, including me, one of the questions of the moment: Just how much is the Boston Globe worth?
I liked how Fitch’s Mike Simonton, another of the analysts, suggested that “buyer” may be a misnomer; “assumer of costs” might be truer.
Given the state of the world, the ad market, the newspaper market and vagaries of the online future, my best guesstimate of a price for the NYT: a buck.
A buck essentially represents a gentleman’s agreement: I take a liability, headache and a distraction off your hands, says the buyer. I give you the great potential of the Globe brand, a top-25 news web site and improved ability to re-jigger the pieces, thanks to our new contracts and cost-cutting, says the Times.
A buck recognizes that there is so much unknown and such unchartable risk and reward here that only a token payment can even it out for both sides.
In the same way that Associated sold the London Evening Standard for a pound…
… Or didn’t, depending on which PR person you listen to.
R