Billionaire Pays $70 Million for The Boston Globe

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

August 5 (Bloomberg) -- UT-San Diego CEO & Vice-Chairman John Lynch discusses the recent purchases of both the Washington Post and the Boston Globe with Jon Erlichman on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

For more, let's turn it over to jon erlichman in los angeles.

It's pretty remarkable that they had acquired "the global e" back in 1993, but our next guest argues the investment group was actually willing to pay more than what john henry ended up paying.

John lynch is a longtime media media executive and currently the ceo of uc san diego and best known from "the san diego union- tribune." thanks for joining us today.

I wanted to talk about the amazing development of jeff bezos acquiring "the washington post." what was your reaction?

It underscores our belief that people see newspapers as a declining medium.

It reaches five times more people through the digital properties and circulation than any other medium and every metro.

If you could channel those people into your manny offerings -- manny offerings, that is a tremendous business.

We acquired the san diego union- tribune and we came in on the first day and announced it was her last day as a newspaper but it will become part of a media, and he.

Are a media company.

As a consequence, we are the number one generator in newspaper business year-over- year.

We think it's a terrific business.

Bezos's acquisition underscores it.

I think it really makes "the new york times" is silly when you compare the $250 million versus the $70 million they secured on behalf of ""the new york times"." let's stay on that for a second.

You raised your concerns about the sale price.

As we look at "the washington post" example, they saw someone in jeff bezos who they thought they could trust to go with a long-term.

"the new york times," "the boston globe," and john henry had a comfortable relationship.

Having an ownership group you're comfortable with is just as important.

Are they comfortable with who the leader is going to be apart from from the exact dollars and cents of the bill you go-- of the bill?

March 18, we were assured that it was a public company looking to secure a return for their investors and that there would be no political philosophies or comfort issues involved.

Price, certainty, and speed to close.

We were the winner in all three of those and ultimately, we were misled and they can sell to whomever they wish.

Clearly, they did not secure the best return for their shareholders.

Secondly, we wasted a lot of time and money.

We think it's unfair.

We have better things to do than chase down things we have no hope of securing at the end of the day.

I get the sense that you're still looking for potential newspapers to acquire.

What is the best way to make those businesses work?

Even if they are working into larger group, we talk a lot about pay walls and the advertising model.

What is the number one way to make newspapers work today?

The most important thing is to approach it as a media company.

Change the dynamics.

Newspaper, used to sit around and wait for bloomingdale's to tell us how many pages there are going going to buy and/or month was made or destroyed based upon their decisions.

We go to local advertisers and we offer them 10 or 11 different channels with which we can serve them and we asked what their budget is and we then meet their needs and overdeliver by a significant amount.

From the new standpoint, we have the largest newsroom in every city, each metro, so you utilize that content across all of your plot warms and you can be extremely successful.

We have reinvested in the newspaper because we have been successful in television, digital, mobile, spanish, all of our other offerings.

John,

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change