Local group says it wants to buy The Boston Globe
A group of more than a dozen investors and management specialists will offer to buy The Boston Globe from its long-time owner, The New York Times Co., the leader of the group said.
Aaron Kushner, an entrepreneur who owns Marian Heath Greeting Cards Inc. in Wareham, said his group, called 2100 Trust, will soon make an offer to the Times Co. He declined to disclose the potential price, but said the investors expect to raise enough money to make it attractive to the Times Co. and invest significantly in New England's largest newspaper, starting with the newsroom.
"We are putting together the business model of taking what is an important community organization and reverse the cycle and have it growing," Kushner, 37, of Wellesley, said an interview. "If the Globe was achieving even half its potential, it would be of much greater import and impact."
The newly-formed group wants to purchase the New England Media Group unit, which includes the Globe, Boston.com, and the Worcester Telegram & Gazette.
Last year the Times Co. had put the Globe up for sale but pulled it off the market, saying that the paper's financial conditions had improved.
Times Co. spokeswoman Abbe Serphos said today, "We do not comment on rumors of acquisitions or divestitures. The Boston Globe is an important part of The New York Times Company. The Globe has made excellent progress and is on solid financial footing. Its continued digital and print progress signals a strong future."
The Times Co. bought the Globe for $1.1 billion in 1993 and the T&G for $296 million in 2000. The T&G is the largest daily in central Massachusetts.
Globe publisher Christopher M. Mayer in a memo to employees tonight said that the Times Co. has not been approached by 2100 Trust. Mayer also reiterated that the Globe has been doing better financially.
"While we can't stop others from having interest in our business, I'm viewing any potential outside interest in the Globe as a reaffirmation that we're doing all the right things and moving the business forward," Mayer wrote. "We have a solid strategy. Let's stay focused on our success."
Below, read the statement released from the group, 2100 Trust:
The 2100 Trust, a Massachusetts-based limited liability company, is putting
together a community-focused investor group to submit a letter of intent to
purchase The New England Media Company, including The Boston Globe and all
its associated properties from the New York Times Company.
The Boston Globe has been a pillar in the city, the Commonwealth and the
region for more than a century. We believe that The Boston Globe's strongest
days can be ahead. It is essential that the Globe be positioned for its next
100 years. This will require the significant long-term investment that we
intend to make. One of the principal areas of investment will be the
newsroom, which is due for a significant increase.
We've been impressed by the management and team in place, and how much
they've been able to accomplish given the challenges they face every day. We
look forward to augmenting the resources and talent they have to best serve
Our focus is on the role The Boston Globe can and should play within our
community. And from that focus we believe emerges a business model that
drives us to make the investments needed.