Platinum Equity makes a bid for The Boston Globe

Aug 11 2009

Platinum Equity makes a bid for The Boston Globe

Posted by: admin in Investments and Raising Money

Platinum Equity, the private equity firm that recently purchased The San Diego Union-Tribune, has joined the bidding to acquire The Boston Globe from The New York Times Co. (NYSE: NYT).

The New York Times reported that “Platinum, based in Beverly Hills, bid $35 million and would assume $59 million in pension liabilities, according to people briefed on the process, who asked not to be named because they were not authorized to discuss the matter.”

This is, by far, the worst news possible for locals who were hoping to see The Globe sold to an altruistic, civic-minded Bostonian with deep pockets who would acquire the newspaper out of a desire to maintain its high standards. A San Diego-based private equity firm whose other holdings include Turf Care Supply Corp. and Wheel Pros Inc. seems unlikely to be motivated by anything other than money.

The good news is this: The Boston Globe is losing large amounts of money and has burdensome long-term obligations that make it questionable whether it has any value. That’s why The New York Times was threatening to close it. What that means is that someone with altruistic motives will almost certainly win the auction for The Globe, simply because someone with strictly financial incentives will find better opportunities. The extent of the paper’s mess could be its salvation from the hands of greedy leverage buyout shops.

Platinum Equity makes a bid for The Boston Globe originally appeared on BloggingBuyouts on Mon, 10 Aug 2009 11:10:00 EST . Please see our terms for use of feeds.