George Donnelly, executive editor of the Boston Business Journal, writes the Globe isn't worth the paper it's printed on and, boy, is John Henry going to be sorry he bought it (and yes, he used the word "ass-ache").
The Herald reports two of the losing bidders are outraged, outraged, they tell you, that the Times sold the paper to Henry for less than they say they were willing to pay. The Globe scoops the feisty tabloid and reports, no, it was three bidders who claim they were screwed.
Dan Kennedy writes it's possible Henry won not because he's a commie pinko like those One Worlder eggheads down in New York, rather than a right-thinking San Diegan, but because he might've been the only one to offer straight cash instead of some complicated financing deal involving investment bankers.
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Comments
The land the HQ sits on will
By Crystal Ball
Mon, 08/05/2013 - 9:40am
The land the HQ sits on will be sold to a developer more than recoup the cost and the actual paper liquidated for $1 to some entity with a contractual obligation to allow censoring of all sports coverage.
We have Bingo on Henry
By Stevil
Mon, 08/05/2013 - 11:09am
The poster below brings up an interesting point on the pension obligations. In addition, the BBJ article points out that the city assesses the property at $40 million - commercial properties typically sell for close to double the assessed values so the land alone is probably worth $60-80 million or roughly what Henry paid. Looks like his true net cost is either zero or they paid him to take it.
$1?
By JohnCostello at Work
Mon, 08/05/2013 - 11:41am
You going to clean up the heap of contaminated coal ash underneath? That section of Morrissey Boulevard between the expressway, the cove, the rotary, and the (former) projects) has some original land, but a lot of it is coal ash dumped from the 1890's until the 1950's.
Clean it up?
By Lanny Budd
Mon, 08/05/2013 - 12:31pm
The only thing they'll have to clean up is the soybean-based (ironically?) ink. They'll turn it into high-end condos as is being done to the Baker Chocolate factory.
Or ...
By adamg
Mon, 08/05/2013 - 12:40pm
As they're doing at the old Herald plant (except those will start out as high-end apartments, the condo market still not having recovered).
Globe Sold For Negative $40 Million
By anon²
Mon, 08/05/2013 - 9:59am
People keep missing this, but the New York Times Company kept the Globe's pension obligations as part of the deal, which are said to amount to around $110 million.
Not having to pick that up amounts NYTC essentially just giving the paper away.
holy crap...his ass is feeling good right about now.....
By Sarcastic Sam
Mon, 08/05/2013 - 11:08am
...because the New York Times just puckered up and gave him a big kiss on the cheeks.
I didn't know he's off the hook for those pensions.
He got a great deal.
Competing coverage
By erik g
Mon, 08/05/2013 - 11:21am
I've seen competing coverage on this. Bloomberg says (in a throwaway paragraph at the very end of the article) NYT is only on the hook for those pensions if the new buyer becomes insolvent.
Given that the cost of those pensions is significantly more than what he paid for the Globe, I'd say the chances of Henry declaring bankruptcy in the next five years are somewhere between 100 and 101%. The "restructuring" would let him cut staff and finish hollowing out the shell the Globe has become.
Meaning we could soon be a one paper town?
By Stevil
Mon, 08/05/2013 - 12:36pm
And that newspaper would be the Herald? Now that would be the ultimate irony.
The Herald will go out of
By anon
Mon, 08/05/2013 - 1:05pm
The Herald will go out of business without a printer. Our only local papers will be the weekly/monthly neighborhood independents and the Metro!
I don't think you read the Bloomberg article correctly
By Ron Newman
Mon, 08/05/2013 - 2:23pm
My interpretation of that paragraph:
is that the NYTCo. preferred bids such as Henry's which included cash and did NOT assume the pension liabilities.
Now the games will begin,
By kvn
Mon, 08/05/2013 - 2:40pm
Now the games will begin, trying to duck , dodge , and hide from the pension obligations. I dont know if
The Pension Benefit Guaranty Corporation could be on the hook here for the shenanigans to come or not. Real estate can be sold , trademarks transferred , and the internet can play its part eliminating the physicality of the paper. Maybe Henry can even sell back part of the Globe that houses the printing operation to the Herald, or go into the printing business himself. Maybe Krafty will give him the paper ( raw feedstock ) at a good price. Hope the employees make out okay .
Maybe
By anon²
Mon, 08/05/2013 - 4:27pm
I really haven’t heard much on their pension obligations, and they very well could be solvent.
Hence why the times might have not have wanted to transfer that debt (think Henry pulling a Romney, coming in and leveraging the company and solvent debt for “fees and ownership payouts” before declaring bankruptcy of the “fully independent Globe” and putting it all on the times shoulders). Not saying that’s the plan, but it’s a plausible scenario that the times would want to protect itself from if they’d be on the hook should the Globe default (anyone know why btw?).
Now John Henry's all like "Don't you just love a bargain?"
By adamg
Mon, 08/05/2013 - 4:52pm
Jeff Bezos to buy Washington Post for $250 million.
Just saw that. Who's the
By Scratchie
Mon, 08/05/2013 - 5:00pm
Just saw that. Who's the sucker?
Um, Jeff Bezos.
By adamg
Mon, 08/05/2013 - 5:09pm
Um, Jeff Bezos.
I meant, is it less prudent
By Scratchie
Tue, 08/06/2013 - 8:58am
I meant, is it less prudent to spend $70 mil on a regional paper whose best days are far behind it or $250 mil on a national paper that still has a lot of name recognition.
I'm guessing you don't own Kindle
By Nancy
Mon, 08/05/2013 - 6:10pm
He's the founder of amazon.com.
I like how all the bidders
By Dan Seitz
Tue, 08/06/2013 - 3:58pm
I like how all the bidders who lost are whining they were cheated while simultaneously refusing to answer the rumors that the Times went with Henry because Henry was the only one who'd give a straight answer about keeping the paper in print.
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