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Untitled Document

Losing Control: The Ochs-Sulzberger family, is like that middle class family who is about to lose their house

Published: Sunday, July 27, 2008

How will the Ochs-Sulzberger family justify their relevancy now?


-BY SDH
The New York Times Co reported nasty second quarter results as its stock price continued slide slowing at $12.48. This puts the company's market cap at measly $1.76 billion opening the door for someone to drop a sweet offer on the table double the current value which would put massive pressure on the Ochs-Sulzberger family to sell. But to sell now would be a huge loss for the family and its shareholders. Perhaps now is the time for CEO Janet Robinson to either get creative or if she can’t go the distance, head for the exit. Her leaving won't make a difference but sometimes a change at the top gives those who have loads to lose, a little hope. Some would argue that the Ochs-Sulzberger's should have gotten out when they had a chance, but now the company may never run on all cylinders again. The Ochs-Sulzberger’s grip may finally break, if it isn't already broken.


At its current $12.48 stock price—down 46.3% from a year ago—Times Co. has a $1.79 billion market cap. To put this in perspective, CBS recently acquired tech publisher CNET, a much weaker media brand, for $1.8 billion. Add in the company's $1.1 billion of debt, subtract $42 million for its cash on hand, and the company's total enterprise value—a valuation measure that totals up those items in such a fashion—is just $2.85 billion.


How Can The New York Times Be Worth So Little?

Labels: CEOs, IN_THE_TOILET, Janet_Robinson, MEDIA_STOCKS, NEWSPAPERS, NYT, Ochs_Sulzbergers, OLDMEDIA, Sulzberger_Family

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