The New York Times (NYT) is now running on fumes. S&P has downgraded the company's debt to junk, and Moodys is about to do the same. The stock has fallen to $10, and is being propped up primarily by the company's non-news assets. Given the ongoing decline of print advertising, management now has to take emergency steps to avoid defaulting on the company's $1.1 billion of debt.
SAI and 24/7 Wall Street have put together a seven-part rescue plan:
1. Sell the stake in the building. The New York Times recently moved into a spectacular new Times Square headquarters, which it co-owns with developer Forest City Ratner. At the peak, the NYT's stake in the building might have fetched $1 billion, or $750 million after-tax. Now, the company might be able to net $500-$600 million for the stake. The company needs to sell the building immediately. (It can rent it back, so staffers won't have to move. It just needs the capital. Now.)