Bloomberg is logical buyer of New York Times
by Chris Roush
McIntyre writes, “Bloomberg would be the steward of the editorial independence of the Times that the controlling Sulzbergers want. He has not meddled in the editorial activities of the huge Bloomberg News operation or those of Bloomberg BusinessWeek, which Bloomberg bought from McGraw-Hill Companies Inc. in 2009, despite the magazine’s dilapidated financial situation.
Many members of the Sulzberger clan likely want out of the family’s ownership of the company. Only a few members benefit much from their stakes — mostly Arthur Sulzberger Jr., the chairman of the Times. His hefty compensation package has brought him about $6 million a year for each of the past three years. A sale would spread the wealth to a number of other family members.
The revenue of the Times continues to contract, and only the paywall that the Times has erected around its flagship has helped the drop from being more dramatic. In the third quarter, revenue for the company fell 0.6% to $449 million. Newspaper advertising results were much worse. Advertising revenues fell 8.9% for the period. Even digital ad revenue, which is supposed to offset the drop in print, contracted by 2.2%. Paid subscribers to the Times online division rose again, but there is a natural limit to the number of people who will pay to get the Times digital edition.