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According
to a report in The Boston Globe, the acquisition bid mounted
for it has been rejected by its owners, the New York Times
Co.
Last
month, a group of investors including the former General
Electric Co CEO, the legendary Jack Welch and advertising
executive Jack Connors had unveiled plans to approach
the New York Times Company with an offer to buy out it's
the Boston Globe. (See: Jack
Welch may bid for Boston Globe, says report)
According
too the report, Welch, who had requested for exclusive
rights to negotiate with the company for the acquisition
of The Boston Globe, received a response from Janet Robinson,
CEO, New York Times Co, saying the board was not interested
in the sale of its Boston newspaper.
JP
Morgan, which is working with Welch and Connors towards
a transaction, had valued the newspaper at $550 million
to $600 million — below the $1.1 billion the Times
paid in 1993, the report said.
The
Globe has seen a steady erosion in circulation and
ad revenue over the years, making it a fit case for sale.
It is also reported to be struggling to hold on to advertisers
and readers amid growing web-based competition.
The
Globe's daily paid circulation had fallen 8.5 per
cent to about 397,000 copies for the six-month period
ended March 31, compared with the same period in 2005,
according to data published by the Audit Bureau of Circulation.
Revenue
at the Times' New England group, which includes
The Boston Globe, fell 8.9 per cent to $149 million
in the third quarter.
The
investor group does not plan to abandon its effort, the
report said, citing executives close to the group.
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