The Boston Herald has a story in today’s edition that alleges the New York Times Company shirked it’s fiduciary duty in selecting John Henry as the new owner of the Boston Globe. The article is here.
A losing Boston Globe contender is claiming his San Diego media company outbid Red Sox owner John Henry – and would have gone even higher – a bombshell allegation that he says could delay the deal and leave the New York Times Co. open to shareholder backlash.
“We bid significantly more than Henry,” said John Lynch, the CEO of U-T San Diego, one of the Globe finalists. “At the end of the day, I’m certain our bid was higher and could have been a lot more higher if they had just asked. I’m just stunned. I thought this was a public company that had a fiduciary duty to get the most by its stockholders. … From the beginning, I don’t think they wanted to sell to us.”
Lynch said the Times laid out three qualifiers for the deal: price, capability to close quickly and ability to finance.
“We had the money in the bank, we had the highest price and we rolled over (Friday) and accepted all their terms,” said Lynch.
The Herald goes on to peripherally state the possible reason for the San Diego Union Times Company not being selected.
Douglas Manchester, the owner of U-T San Diego – the newspaper formerly known as the Union-Tribune – has come under fire for aggressively influencing his paper’s editorial content.
More after the jump
How exactly does Manchester “aggressively” influence, his “paper’s editorial content? The liberal Media Matters would be more than happy to tell you.
But now the magnate controls the area’s largest and most influential news operation, allowing him a new channel to push his political views.
Manchester is a major political donor who has contributed to numerous Republican candidates and organizations. This past cycle he donated more than $100,000 to super PACs supporting Mitt Romney’s campaign. He also made maximum donations of $30,800 to the Republican National Committee, $5,000 to Mitt Romney’s campaign, and $5,000 to the campaign of local GOP congressman Darrell Issa.
The developer also contributed $5,000 to Mitt Romney’s Free and Strong America PAC and gave generously to Republican committees in Idaho, Massachusetts and Vermont. He similarly donated thousands to Romney, John McCain, and the RNC during the 2008 campaign, and gave $125,000 to the campaign to overturn same-sex marriage in California.
After securing ownership of the U-T, Manchester was able to give not only significant financial support but editorial support as well to failed Republican mayoral candidate Carl DeMaio in the 2012 San Diego mayor’s race. The U-T’s support for DeMaio was so blatant that his opponent, Rep. Bob Filner, used it as the basis for a 30-second ad that ran during the campaign.
John Henry on the other hand is a long time Democratic donor and activist. According to his donation records Henry has donated over $1.1M to Democrats and special interest groups, while $1000 went to a lone Republican.
$101,500 special interest
Seemingly the New York Times Corporation may have not fulfilled it’s fiduciary responsibility to get the most money for an asset it was selling. Furthermore, it seems to be based on the politics of the bidders.
Are you a shareholder of the New York Times? If so, you may want to call the investor relations department, to express your displeasure at the Times management, for not looking out for your financial interests.