The New York Times Company announced this afternoon that it plans to get rid of its broadcast group, including nine local TV stations. The release follows:
THE NEW YORK TIMES COMPANY ANNOUNCES PLAN TO SELL ITS BROADCAST MEDIA GROUP
NEW YORK, September 12, 2006 – The New York Times Company announced today that it plans to sell its Broadcast Media Group, which includes nine network-affiliated television stations and their related properties.
“The decision to explore the sale of our broadcast stations is a result of our ongoing analysis of our business portfolio,” said Janet L. Robinson, president and CEO. “These are well-managed and profitable stations that
generate substantial cash flows and are located in attractive markets. We believe a divestiture would allow us to sharpen our focus on developing our newspaper and rapidly growing digital businesses, and the synergies between them, thereby increasing the value of our Company for our shareholders.”
The stations that comprise the Broadcast Media Group are:
– WHO-TV in Des Moines, Iowa (NBC);
– KFSM-TV in Ft. Smith, Ark. (CBS);
– WHNT-TV in Huntsville, Ala. (CBS);
– WREG-TV in Memphis, Tenn. (CBS);
– WQAD-TV in Moline, Ill. (ABC);
– WTKR-TV in Norfolk, Va. (CBS);
– KFOR-TV in Oklahoma City, Okla. (NBC);
– KAUT-TV in Oklahoma City, Okla. (MyNetworkTV); and
– WNEP-TV in Scranton, Penn. (ABC).
Last year, the Broadcast Media Group accounted for approximately 4% of the Company’s total revenues. In 2006, the Company expects the Group will have revenues of approximately $150 million and operating profit of about $33
million. Depreciation and amortization is expected to be approximately $10 million for the year.
The Times Company has retained Goldman, Sachs & Co. to advise it.
There can be no assurance that any transaction will take place. Additional details will be provided when and if the Company enters into a transaction. As a matter of policy, the Company will not comment upon any proposals,
discussions or rumors regarding the proposed sale.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties that could cause actual results to differ
materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail,
national and classified advertising, and other risks as detailed from time to time in the Company’s publicly filed documents, including the Company’s Annual Report on Form 10-K for the year ended December 25, 2005. The
Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
The New York Times Company (NYSE: NYT), a leading media company with 2005 revenues of $3.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, nine
network-affiliated television stations, two New York City radio stations and 35 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and
distributing high-quality news, information and entertainment.