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.)
SUBSCRIBE AND FOLLOW
Get top stories and blog posts emailed to me each day. Newsletters may offer personalized content or advertisements.Learn more