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As the New York Times Co. is negotiating with lenders over its debt, speculation has been floating around the blogosphere, pushing the premise that Google Inc. should acquire the beleaguered Gray Lady. The thesis (or, rumor, as some would put it) has been around since the beginning of the year, with SpliceToday on Thursday reintroducing the idea of the unorthodox union of the stalwart of old media with the scion of new media.
But the possibility of this dream hookup is just fantasy because the owners of the Times -- the Sulzberger family -- for now, seem emboldened to hold on to the company for as long as it can. The Sulzbergers, however, are living on borrowed time as the family is facing pressure on all fronts to save the company, which is hemorrhaging as the slow economy has decimated its advertising and subscription revenue. Already, the media company took the extreme move of borrowing $250 million from their newly built headquarters (pictured), but that seems to be a temporary band-aid on what very well could be a mortal wound.
Meanwhile, a growing disgruntled faction of shareholders (earlier in the year the company acquiesced to adding board members from a group of activist hedge funds) could be so dissatisfied with the founding family that it might force a hostile takeover. The only question about that scenario is the Sulzbergers do hold the upper hand with a majority of Class B voting shares. But the stage seems to be set for some kind of restructuring at the company that could include a merger, and some suggest why not with the deep-pocketed Internet giant Google.
For one, John Ellis at RealClear Markets said earlier this year the Sulzbergers would run into the arms of Google to avoid any takeover from Rupert Murdoch, who reportedly covets the Times. Meanwhile, cash-flush Google reportedly would be able to scoop up the Times, which includes prime New York real estate, for $4 billion or possibly less in this declining market. Ellis argues the addition would make sense for Google because it would be able to "make money repurposing the cultural and culinary coverage, to pick just two categories, of the New York Times, across both its Internet and mobile platforms."
The pros for a deal could go on and on, but the only thing that matters, right now is that the ball is in the Sulzbergers' court, and they still want to try to stay in the game. The only problem with that strategy, like the Tribune Co., they could end up losing in the end. - Gerald Magpily
source
holy crap! If google gets this they will be getting way too much power!
But the possibility of this dream hookup is just fantasy because the owners of the Times -- the Sulzberger family -- for now, seem emboldened to hold on to the company for as long as it can. The Sulzbergers, however, are living on borrowed time as the family is facing pressure on all fronts to save the company, which is hemorrhaging as the slow economy has decimated its advertising and subscription revenue. Already, the media company took the extreme move of borrowing $250 million from their newly built headquarters (pictured), but that seems to be a temporary band-aid on what very well could be a mortal wound.
Meanwhile, a growing disgruntled faction of shareholders (earlier in the year the company acquiesced to adding board members from a group of activist hedge funds) could be so dissatisfied with the founding family that it might force a hostile takeover. The only question about that scenario is the Sulzbergers do hold the upper hand with a majority of Class B voting shares. But the stage seems to be set for some kind of restructuring at the company that could include a merger, and some suggest why not with the deep-pocketed Internet giant Google.
For one, John Ellis at RealClear Markets said earlier this year the Sulzbergers would run into the arms of Google to avoid any takeover from Rupert Murdoch, who reportedly covets the Times. Meanwhile, cash-flush Google reportedly would be able to scoop up the Times, which includes prime New York real estate, for $4 billion or possibly less in this declining market. Ellis argues the addition would make sense for Google because it would be able to "make money repurposing the cultural and culinary coverage, to pick just two categories, of the New York Times, across both its Internet and mobile platforms."
The pros for a deal could go on and on, but the only thing that matters, right now is that the ball is in the Sulzbergers' court, and they still want to try to stay in the game. The only problem with that strategy, like the Tribune Co., they could end up losing in the end. - Gerald Magpily
source
holy crap! If google gets this they will be getting way too much power!
