New York Times rejects plans to sell Boston Globe
The New York Times has decided not to sell its struggling subsidiary, The Boston Globe, after all. On Wednesday, the publisher cited successful restructuring measures that had significantly improved the Globe’s financial situation as the reason for its decision.
The New York Times publishing house had forecast an operating loss of 85 million dollars for the Globe in 2009. According to the publisher, the savings now achieved amount to at least 38 million dollars. The Globe is therefore still likely to report a considerable loss at the end of the year.
The Boston Globe, like many other newspapers in the US and Europe, is suffering from a severe decline in advertising due to the economic crisis. The internet, with its largely free content, is also increasingly undermining the business model of traditional print media.
