Given the decline in market value of the New York Times over the past five years the paper might be reaching a psychological low-water-mark that could put the company in play, John Ellis writes at RealClearMarkets.
Likening that scenario to Rupert Murdoch's takeover of Dow Jones Inc., Ellis argues that family and other vested interests could find an offer attractive at some lowered valuation and no clear evidence that growth was in the immediate offing.
The most logical buyer? Google, Ellis contends, the Internet behemoth some already regard as a media company.
"If it proffered a Murdoch-like, no-auction bid of $4 billion, wouldn't the Sulzberger family have to accept it? Every single class B shareholder would accept the offer. It's their only exit. It is also likely that Times employees and retirees would enthusiastically support the deal; it's their only exit as well. So it would all come down to whether the Sulzberger family (smaller in number and not as far-flung as the fractious Bancroft clan that owned Dow Jones) would accept the deal."
What's in it for Google?
- It's cheap at that price
- As you embark on a wireless strategy you buy establishment expertise in dealing with government
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