Jack Welch''s bid for The Boston Globe rejected

22 November 2006

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.