New York Times Co.'s (NYT) fourth-quarter net income plummeted 48% as weak online advertising sales added to its print-advertising woes.
The publisher of The New York Times and The Boston Globe also said it is exploring a sale of its 18% stake in New England Sports Ventures LLC, owner of baseball's Boston Red Sox and Fenway Park as well as 80% of New England Sports Network. It bought the stake in 2002 and is considering a sale as the cash- strapped company looks to raise capital.
It also warned that crumbling equity markets have "adversely" affected the status of its pension plans, leaving it underfunded by an estimated $625 million. It said it will have to fund the deficiency over seven years, assuming harsh conditions continue.
That is not good news for a company already grappling to restructure debt and cut costs in efforts to boost its liquidity. New York Times got a $250 million cash infusion earlier this month from Mexican billionaire Carlos Slim and is nearing a deal to raise as much as $225 million from a sale-leaseback of its share of its midtown Manhattan headquarters.
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