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| 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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