Will the Taylor group really be able to pull off a deal to buy back the Boston Globe from the New York Times Co.? Today’s Globe piece on Stephen Taylor’s quest to acquire the paper his family sold in 1993 reports that he’s having some trouble scaring up enough money. Beth Healy writes:
Some wealthy Bostonians spurned Taylor’s early overtures, wary of investing in what they consider a dying industry, according to people involved in the bid. With final offers due tomorrow, Taylor is still scurrying to raise money. He has to convince investors he has what it takes to make it in a radically shifting newspaper landscape, despite having been out of the business for nearly a decade.
That fits with information I reported two weeks ago, when I wrote that the Taylor group was still trying to line up investors.
Meanwhile, the Boston Herald’s Jessica Heslam reports that the price of purchasing the Globe and the Worcester Telegram & Gazette may have risen substantially. Both Taylor and Platinum Equity, the only other serious bidder, have reportedly offered to pay $35 million and to assume $59 million in pension liabilities. Now, though, Heslam quotes anonymous “insiders” who say that the esimate of pension liabilities has nearly doubled, to $115 million.
Hard to tell what’s going on here. Heslam quotes a Times Co. spokeswoman who says something that sounds vaguely like a denial, but not really. So, for the moment, let’s proceed under the assumption that Heslam’s sources are right. Will this kill the deal? Especially with the under-capitalized Taylor bid?
It’s possible that the Times Co. will be forced to eat some of that $115 million, like Theo Epstein getting rid of another overpaid, under-performing shortstop. Even though the Globe carefully notes that it’s “conceivable the Times Co. won’t sell the paper,” Poynter Institute media analyst Rick Edmonds recently noted that the Times Co. would lose substantial tax advantages if it doesn’t sell by the end of 2009.
It will be fascinating to see what gets announced tomorrow. That is, if there’s an announcement.