New York Times Stalls Sale of Worcester Telegram & Gazette

| About: New York (NYT)

The New York Times Co. (NYSE:NYT) recently decided not to sell Massachusetts newspaper, Worcester Telegram & Gazette.

The New York Times notified that 2 potential bidders, Harry T. Whitin, a former Telegram & Gazette editor, and Ralph D. Crowley Jr., an executive of a bottling company, had emerged for the Worcester Telegram & Gazette. The company had bought the Worcester Telegram & Gazette for $296 million in 2000.

Earlier, the company decided not to sell its daily newspaper, the Boston Globe, after effective cost-cutting measures and increase in price resulted in improved financial position.

The newspaper industry has long been grappling with the slump in print advertising demand amid the global meltdown, as advertisers are migrating to the Internet due to increasing online readership and lower ad prices than print.

The New York Times announced a recent round of cuts in its headcount by laying off at least 18 newsroom employees.

In Oct 2009, The New York Times hinted that it plans to trim newsroom staff by 8% or nearly 100 jobs by the end of the year through buyouts or layoffs, leaving 1,150 editorial staff, which is significantly higher than other U.S. newspapers where the numbers are not more than 750.