The New York Times (NYT) suspended its dividend. That says a lot about what it sees as it looks out of the next quarter. Print and online advertising must be getting much worse than last year.
Less than four months ago, the Times lowered the dividend from 23 cents to 6 cents. So the publisher is giving up on sending money to shareholders, including the founding Sulzberger family.
Cutting the dividend is not going to do much. Selling off or closing divisions that are dragging the company down will. The New York Times needs to rid itself of its regional newspapers including The Boston Globe, even if it has to shut them down.
In the fourth quarter of last year, revenue at the firm’s New England Media Group fell 15%. Experts think that The Boston Globe loses $1 million a week. The parent company has to make up for that. Killing the Globe would make up for a lot more than the last dividend cut.
The company’s Regional Newspaper Group is made up of a number of small dailies and weeklies. Revenue in that division dropped 16% last quarter. The papers in the group need to be auctioned off or shuttered.
The New York Times newspaper may well be saved. It cannot be with the anchors of the other properties.
Douglas A. McIntyre
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
