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Monday, August 5, 2013

John Henry Gets The Boston Globe

John Henry
Boston Red Sox principal owner John Henry entered into an agreement early Saturday to buy The Boston Globe, a deal that will put the 141-year-old newspaper, its websites, and affiliated companies into the hands of a personally shy businessman with a history of bold bets.

The impending purchase for $70 million in cash marks Henry’s first foray into the financially unsettled world of the news media, according to the boston.com.

The NY Times reports the sale, for $70 million, returns the paper to local ownership after two decades in which it struggled to stem the decline in circulation and revenue. The price would represent a staggering drop in value for The Globe, which The Times bought in 1993 for $1.1 billion, among the highest prices paid for an American newspaper.

Boston.com reports the 63-year-old Henry made his fortune in investment funds and has built a sports empire that includes the Red Sox and New England Sports Network, as well as the Liverpool Soccer Club and Roush Fenway Racing, a NASCAR team.

In buying the Globe and its websites, BostonGlobe.com and Boston.com, Henry bested a field of more than a half dozen bidders, including members of the Taylor family who sold the Globe to the New York Times Co. in 1993.

As part of the agreement with the Times Co., Henry also will acquire the Worcester Telegram & Gazette newspaper and its website, as well as the Globe’s direct mail business and a 49 percent interest in the Metro Boston commuter newspaper.

The sale is expected to close in 30 to 60 days.

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