Metro puts US papers up for sale
Metro International S.A., the worldwide publisher of free daily newspapers, has put its three US properties, including Metro Boston, on the auction block, according to an executive briefed on the deal.
The newspapers - Metro Boston, Metro New York, and Metro Philadelphia - have been a drag on the company's earnings in recent years, losing more than $10.6 million in the past 12 months, according to company filings. In October, Metro International said it began a strategic review of its underperforming operations.
Publishers at Metro Boston and Metro New York said yesterday they were not aware the papers were up for sale. "My understanding is that Metro has been looking for investors and partners in the US to expand its US operations," Metro Boston publisher Stuart Layne said yesterday in an interview.
Several potential buyers have looked at the three publications, which were put on the market about a month ago, according to the executive who asked for anonymity.
The Boston Phoenix yesterday reported online that representatives from billionaire Philip Anschutz's company were bidding on the US Metro papers in New York. Anschutz owns free newspapers in several cities, including San Francisco, Baltimore, and Washington, D.C. A spokesman for Anschutz did not return repeated calls for comment last night.
Two years ago, Metro International sold a 49 percent stake in Metro Boston to The New York Times Co., which owns The Boston Globe. The goal of the joint venture is to give the papers access to new markets, attract new readers and advertisers, and provide an opportunity for cross promotions.
According to the latest public figures, Metro Boston's daily distribution is 186,956. Revenues declined 12 percent in the third quarter ended Sept. 30, according to Metro International. Revenues were down 5 percent in Philadelphia and up 18 percent in New York.
Metro's US papers are free newspapers published Monday through Friday targeting young professionals. The papers, hawked at city subway stations, are designed for a 20-minute read during morning commutes.
Times Co. has two members of its New England Media Group sit on the board of Metro Boston; the Globe is part of that group.
Catherine J. Mathis, a spokeswoman for Times Co., declined to comment. Boston Globe publisher P. Steven Ainsley, also declined to discuss the matter, saying company policy prohibits him from talking about acquisitions or divestitures.
Metro International publishes in more than 100 major cities across the world, including ones in Asia, Europe, and South America.
Jenn Abelson can be reached at abelson@globe.com.
