For $575 Million, New York Times Sells Off Television Stations to Private-Equity Firm
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The New York Times Co. said yesterday that it agreed to sell its television stations to private-equity firm Oak Hill Capital Partners for $575 million.
New York Times announced in September plans to sell its group of nine television stations, which the company viewed as a noncore asset. At the time, analysts estimated the sales could fetch roughly $500 million.
The company, which publishes the New York Times and Boston Globe newspapers, said in October that interest was high to buy the TV stations, which are outside the country’s 40-largest TV markets. New York Times said in October a sale would likely take several months. Yesterday it said the TVstation sale would help the company focus on its key operations.
“Our focus now should be on the development of our newspapers and our rapidly growing digital businesses and the increasing synergies between them,” the president and chief executive of the New York Times, Janet Robinson, said in a statement.
Before the announcement Thursday, New York Times shares ended trading down 39 cents, or 1.6%, at $23.34.
The sale marks the latest media asset to be acquired by private-equity investors, who in many cases have shown greater tolerance for slow-growth, but cash rich, TV, radio and newspaper companies. Univision Communications Inc. and Clear Channel Communications Inc. agreed last year to buyouts by private-equity groups. Just weeks ago, another newspaper publisher, McClatchy Co. sold its Minneapolis Star Tribune newspaper to a private-equity firm.
Oak Hill Capital Partners hasn’t been a major investor in media companies until now, but the firm was involved in early bidding for Clear Channel. Three years ago, the firm acquired drugstore chain Duane Reade.
The stations Oak Hill is acquiring from New York Times are in Norfolk, Va.; Memphis, Tenn.; Oklahoma City, Okla.; Scranton, Penn.; Des Moines, Iowa; Huntsville, Ala.; Moline, Ill.; and Fort Smith, Ark.
New York Times said the deal is expected to close during the first half of this year, subject to regulatory approvals.
Wall Street largely applauded New York Times’ plans for the TV group, but didn’t think a sale would overcome deteriorating trends at the company’s newspapers.
