Amid the secular and cyclical slowdown in print advertising The New York Times Company (NYT) recently reported third-quarter 2009 results that topped the Zacks Consensus Estimate. The New York Times quarterly earnings of 16 cents a share surpassed the Zacks Consensus Estimate of 2 cents, and the prior-year quarter earnings of 5 cents. The better-than-expected results came on the heels of significant cost-cutting measures and newspaper price increase. On a reported basis, including one-time items, the company reported a loss of 25 cents a share, a substantial improvement from the loss of 74 cents delivered in the year-ago quarter. Management now expects to save $475 million in operating costs in 2009 up from $450 million previously anticipated. Operating costs fell 21.6% to $490 million, whereas operating profit surged 30.2% to $80.6 million. Total revenue dipped 16.9% to $570.6 million, primarily due to lower print ...

The New York Times Company (NYT) shed its plan to sell the Boston Globe after effective cost-cutting measures and an increase in price led to an improved financial position.

The company's series of steps included labor contract concessions expected to cut $20 million yearly in operating costs, consolidation of printing facilities projected to save $18 million a year, reduction in compensation for managers, and a rise in prices for both newsstand and home delivery of the paper. The company is also viewing options to price its online contents on its website, Boston.com.

The newspaper industry has long been grappling with the slump in advertising demand amid the global meltdown, as advertisers are migrating to the Internet due to increasing online readership and lower ad prices.

Earlier in August 2009, The New York Times Company hired Goldman Sachs to explore strategic alternatives for its New England Media Group, which includes Boston Globe,

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Advertising mogul Ed Eskandarian is selling his minority stake in the Boston Red Sox to Seth Klarman, a well known Boston hedge fund manager, according to two people briefed on the transaction.

via Boston Red Sox - Minority owner selling stake in Red Sox - The Boston Globe.  

Seth Klarman, the man who wrote the most famous (or infamous) value investing book of the last ten years, Margin of Saftey (read my review), seems to have made a distinctly non-value purchase. While the details of the transaction haven’t been released, we do know that public consensus on the Red Sox’ value is probably in the $1 billion range or at least 40% above the price paid for the franchise in 2002 by John Henry and Co. 

The Red Sox seem to be reaching a crescendo in their illustrious history with regular rookie of the year contenders, an MVP, two world series

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Quotable “I think if you have some principles and know what you're doing, the market responds. They see that you have some structure to your actions, that it isn't just ad hoc -- you'll do this today but you'll do something different tomorrow. And the market respects people in supervisory positions who seem to be on top of what's going on. So I think if you're tough about firms that have invested unwisely, the market won't blame you. They'll say, 'Well, yeah, it's your fault. You did this. Nobody else told you to do it. Why should we be saving you at this point if you're stuck with assets you can't sell and liabilities you

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