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Jack Connors: No Globe for me! Plus: FT, WTF?

That's the most important point of this Globe business update. If Connors is telling the truth, then the Financial Times got it wrong.

The second most important point is Herald publisher Pat Purcell's statement that he, too, is uninterested in the Globe.

Please note that multiple versions of the FT story have appeared in the past few days. In the one I read and posted on, Connors (as I noted at the time) wasn't mentioned by name as a possible future buyer; Pat Purcell didn't seem to be one either. But in two other versions--one of which apparently preceded the piece I read, according to the FT web site, and one of which apparently was published at exactly the same time--Connors and Purcell are far more significant. Confused? Me too.

Finally, Dan Kennedy has the actual Barclays report that put the Globe's estimated value at a stunningly low $20 million, tops.

 

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2 Comments

  • Upside Potential said:

    Huh?

    The Barclay's report suggests the Globe is worth $5 million LESS (in the bull case) than the Telegram (which is referred to as the Worchester papers, which casts some doubt on the report's value for me) and only twice as much as the NYT's 49 percent stake stake in Metro Boston.

    In other words, Metro's total value is equal to that of the Globe? Whaaa?

    I'm not saying the Globe is worth anywhere near what NYT paid for it or even what Connors et al were willing to pony up a couple years back, but these numbers are clearly off a dart board or straight out of an analyst's, um ...  imagination.

    December 29, 2008 4:53 PM
  • Cynic said:

    Here's where the Barclay's numbers come from. They estimated the 2009 EBITDA for each of the individual assets, then multiplied that number by 3 to produce the 'Bear' valuation and by 5 to produce the 'Bull' valuation. Since they expect the Globe to earn only $4 million next year, they placed the value between $12-20 million. Go take a look at each of the other numbers, and you'll see that this is the case. (Which raises the interesting question - by this method, if the Globe were to lose $4 million in 2009, would Barclay's assume that the Times would have to pay a purchaser $12-20 to take the property off its hands?)

    I know, I know. It's surreal. How could that pass for meaningful valuation? Can a Wall Street analyst actually make buy/sell recommendations on the strength of something so stupid? Apparently, yes. Remember, this same analyst lists the "Worchester papers" in the plural, because it's the Telegram & Gazette.

    Surreal.

    December 29, 2008 6:42 PM

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