May 14, 2012
Due to declining ad revenue, New York Times Co. sold their remaining investment shares in Fenway Sports Group (owner of the Boston Red Sock) for $63 million cash. The shares were spread among multiple eager buyers. Back in February, Times Co. sold a third of the shares in Fenway for $30 million.
The New York Times have been struggling to keep their head above water as declining ad sales has caused the company stock to drop 1.2% to $6.43. This year alone they have seen a 17% drop in share price, likely in part of increased popularity in internet companies such as Google Inc. and Facebook Inc.
The newspaper publisher still owns the Boston Globe and the Worcester Telegram & Gazette. Whether they seek to sell these companies as well remains unknown at this time.
However this is not the first time the large Newspaper Company have sold their stake in a company for a revenue boost. In December 2011 they sold Regional Newspaper Group for a little over $143 million. With the boost in capital they plan to continue to increase their digital business, in hopes of securing a piece of the online marketing ad sales.