The famous Sulzberger dynasty is quietly tightening its financial grip on the New York Times and the Boston Globe, a new analysis shows. And itÂ’s using shareholdersÂ’ cash, instead of its own, to do it.
A Herald examination of Times financial filings shows that since Arthur “Pinch” Sulzberger Jr. took over as chairman in 1997, The New York Times Co. has bought up almost one-third of the stock held by outsiders. Meanwhile the Sulzbergers themselves have “basically held their shares,” says company spokeswoman Catherine Mathis.
And so, without spending a dime, the storied newspaper dynasty has raised its stake to about 20 percent.
“If you keep doing that over a period of years, at some point there’s only one shareholder left standing,” says Putnam fund manager Rich Cervone.
“It’s a slow process of going private,” adds Lee Forker, president of New England Research & Management in Boston.
The Times has spent $3 billion so far buying out shareholders.
Total net income from 1997 through 2005: $2.85 billion... |