New York Times Co. (NYT) inked a deal to unload its New York
radio station in a deal worth $45 million as the struggling
newspaper company raises more cash from its assets outside of its
namesake chain.
The company, which has been struggling amid a prolonged
advertising slump and a migration to the Internet, has been
exploring the sale of some assets for some time to deal with its
debt load.
On Tuesday, New York Times said WQXR-FM, a classical music
station that serves the metropolitan area, would be acquired by the
radio segment of Univision Communications Inc. (UVN). The
Spanish-language media company will pay $33.5 million to exchange
the broadcast license and transmitting equipment for its 105.9 FM
frequency for that of WQXR's 96.3 frequency, which has a stronger
signal. WNYC Radio will then pay New York Times $11.5 million for
the WQXR-related assets.
The transaction is expected to close in the second half of the
year, pending Federal Communications Commission approval.
WQXR was founded in 1936 as the U.S.'s first commercial
classical station. The FM station signed on in 1939 and both were
sold to New York Times in 1944. New York Times sold off the AM
station to Walt Disney Co.'s (DIS) Radio Disney in 2006. The
classical music will remain on the station, which New York Times
said will reach "the vast majority" of its current audience.
The deal is one of several New York Times has been looking at or
already agreed to in recent months. It settled on a $225 million
sale-leaseback of its Manhattan headquarters with an investment
firm in March, and has been exploring the sale of its stake in New
England Sports Ventures LLC, owner of baseball's Boston Red Sox and
Fenway Park.
New York Times is also seeking bids for the Boston Globe after
wrangling with the paper's union, in order to raise revenue and
keep from closing the struggling newspaper.
Shares were up 1% to $5 in recent trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com