December 27, 2011
For The New York Times Company
- Robert H. Christie, 212-556-1981; email@example.com
- Abbe Serphos, 212-556-4425; firstname.lastname@example.org
- Andrea Passalacqua, 917-576-8173; email@example.com
For Halifax Media Holdings LLC
This press release can be downloaded from www.nytco.com
The New York Times Company Agrees to Sell Its Regional Media Group to Halifax Media Holdings LLC
NEW YORK, December 27, 2011 – The New York Times Company (NYSE: NYT) has entered into an agreement to sell its Regional Media Group, consisting of 16 regional newspapers, other print publications and related businesses, to Halifax Media Holdings LLC for $143 million in cash, subject to certain adjustments. The transaction is expected to close within a few weeks and upon completion of the sale, the Company will record an after-tax gain on the sale in the first quarter of 2012. The Company intends to use the net proceeds for general corporate purposes. The Company estimates the net after-tax proceeds from the sale will be approximately $150 million.
“These news organizations have served as trusted institutions in their communities, delivering news and information that matter most to their readers,” said Arthur Sulzberger Jr., chairman of The New York Times Company. “The sale of our Regional Media Group will enable The New York Times Company to continue our transformation to a digitally-focused, multiplatform media company.”
The Regional Media Group comprises the following publications:
Under the Times Company’s stewardship, the newspapers within the Group have received three Pulitzer Prizes, including the 1971 Prize for editorials in The Gainesville Sun on the peaceful desegregation of Florida’s schools, the 1997 Prize for spot news photography for The Press Democrat for a photograph of a firefighter rescuing a teenager from raging floodwaters and the 2011 Prize for investigative reporting for the Sarasota Herald-Tribune’s year-long series on the challenges that Florida’s property insurance industry have posed for ordinary citizens.
“The purchase of the Regional Media Group reflects Halifax Media’s belief that a good newspaper is an essential part of any vibrant community. The strong local news coverage these papers provide represents not only an important community service, but, in our eyes, a good investment,” said Michael Redding, chief executive officer of Halifax Media. “We have been impressed with the newspapers’ reputations as well as the markets they serve. When you have the opportunity to purchase solid news products located in great markets, it is very compelling, and we are excited to have the Group join Halifax Media.”
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 circulation generated by the various markets, material increases in newsprint prices and the development of digital businesses. They also include risk factors detailed from time to time in The New York Times Company’s publicly filed documents, including its Annual Report on Form 10-K for the year ended December 26, 2010. The New York Times Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
About The New York Times Company
The New York Times Company (NYSE: NYT), a leading media company with 2010 revenues of $2.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers and more than 50 Web sites, including NYTimes.com, BostonGlobe.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.
About Halifax Media Holdings LLC
Founded in 2010, Halifax Media is headquartered in Daytona Beach, Florida. The company’s investment group includes Stephens Capital Partners LLC, Jaarsss Media, and Redding Investments. Halifax’s strategy is to invest long-term capital in quality companies positioned in strong markets that are closely connected to the community.