Bloomberg News

New York Times Co. Sells Remaining Stake in Fenway Sports

May 11, 2012

New York Times Co. (NYT:US) sold its remaining stake in Fenway Sports Group, owner of the Boston Red Sox baseball team, for $63 million in cash to multiple buyers.

Times Co., publisher of the New York Times newspaper, expects a pretax gain of about $38 million in the second quarter, according to a regulatory filing today. The company sold a third of its Fenway stake in February for $30 million.

The newspaper publisher has been selling assets amid declining advertising sales as the publishing industry loses ad dollars to Internet companies such as Google Inc. (GOOG:US) and Facebook Inc. Times Co. reported a sevenfold rise in first-quarter profit last month after selling regional publications.

In 2002, Times Co. paid $75 million for a 17 percent stake in Fenway Sports Group. The sports venture also owns the English Premier League soccer club Liverpool Football Club and 80 percent of New England Sports Network, a regional sports cable network.

The newspaper publisher, which still owns the Boston Globe and the Worcester Telegram & Gazette after selling the Regional Newspaper Group for $143 million in December, has built up its digital business to capitalize on the ad industry’s shift toward online marketing and away from print.

Times Co. dropped (NYT:US) 1.2 percent to $6.43 today in New York. The shares have lost 17 percent this year.

To contact the reporter on this story: Edmund Lee in New York at elee310@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net


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Companies Mentioned

  • NYT
    (New York Times Co/The)
    • $12.3 USD
    • 1.08
    • 8.78%
  • GOOG
    (Google Inc)
    • $568.27 USD
    • -9.09
    • -1.6%
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