But what’s now becoming evident to staffers—that the paper loses a tremendous amount of money—is something Times Company executives have known for some time...
“I don’t go for this whole ‘The Times ****ed us up’ line,” he said. “It’s nonsensical. I saw someone quoted anonymously in the Boston Herald and that’s pretty ****ing bold. It’s something you could hear, but it’s not a majority.”
Just how much is The Globe losing The Times? Executives told union leaders that the paper lost $50 million last year, and would lose $85 million this year
when the paper is supposedly losing so much more.
So what is the real breaking point for The Boston Globe?
“It’s really the trend,” said Ed Atorino, the analyst from Benchmark Company who specializes in media... if you’re losing $85 million and you think the next year it’s going to $100 million, and you think there’s no stopping it, you can’t let this continue.”
“As the banks see deterioration in cash flow, that means The Times is approaching a limit, or a trigger point, at which the banks can force an action to get them into Chapter 11,” he said. “Increasing losses at The Globe is reducing The Times’ cash flow and driving them possibly toward their bank agreement limit, which could lead to Chapter 11. Then if that happens, the banks can force them to sell stuff, and a lot, a lot of nasty stuff can happen.”
...literally every dollar at this point counts. And if you don’t get it, you basically have no other choice other than to make that threat.
If the paper could be sold, it would be. But who would actually buy it at this point? In late 2008, Barclays valued The Globe at $20 million.
“I doubt there’s actually a market for it,” said Mr. Morton, the analyst.