The New York Times’ financial woes continue to mount, and that’s good news for America. To offset shrinking revenues, the paper plans to borrow $225 million by mortgaging its 52-story Manhattan headquarters. This should be a cause for celebration for patriots everywhere.
The company’s stock lost half its value this year. According to the December 9 Financial Times, “advertising revenue at the paper fell sharply in November.”
The Times owes $400 million on two revolving lines of credit. Analysts believe mortgaging its building is the only way to secure the capital it needs for 2009, which is expected to be another bad year for the paper that makes all the news fit.
Financial Times says The Times is also considering the sale of certain assets to raise operating capital. The New York Times Company owns The Boston Globe and an interest in the Boston Red Sox.
The Times’ troubles stem in part from a bad economy and the fact that many young people don’t want to read newspapers, due to public education (of which The Times is an enthusiastic booster) producing several generations of functional illiterates.
Yet another factor is growing disgust with the way The New York Times manages, manipulates and mangles the news to advance its political agenda.
This was particularly blatant in the past election, when the paper became an unofficial adjunct of the Obama campaign. The McCain camp complained that The Times was “150 %” behind Barack Obama.
The Times is notorious for its attacks on patriotism, the market economy, religion, traditional morality and national security. Thus, whatever weakens The New York Times strengthens America.
For the Gray Lady, let the bad times roll.