The news business in America has been in the news a lot recently, and unfortunately the news is pretty much all bad.
Two of our most storied newspapers, the Washington Post and the Boston Globe, have been sold for a small fraction of their value only a decade ago. The New York Times, which bought the Globe in 1993 for $1.1 billion, sold it to billionaire John Henry for only $70 million. What’s worse, the Times retained liability for the Globe’s pension obligations, which reportedly total more than $100 million. If you do the math, that means the Times basically lost its entire $1.1 billion investment over 20 years. Although the Times tried to justify its sale as an effort to focus on its core “brand,” it’s obvious the sale sought to unload a money pit that the Times didn’t know how to turn around.
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