The New York Times' Problems Pile up

The current economic crisis is making the nosedive of the US newspaper industry even more pronounced.

The US newspaper industry seems to be going
up  in smoke in the current crisis. (EPA photo)

Now we hear The New York Times parent company is suspending the distribution of its quarterly dividend, the financial force that has been sustaining the Ochs-Sulzberger family, the owner of the most influential  paper in the US and probably the world.

The company's stock hit $3.51 on Thursday, making it less than the price of the newspaper at newsstands.

Here's from the Huffington Post:

The company had previously slashed its dividend from $0.23 per share to $0.06 per share in November 2008.

"Today's decision provides the Company with additional financial flexibility given the current economic environment and the uncertain business outlook," chairman Arthur Sulzberger said in a statement. "We have taken decisive steps to reduce capital spending, lower operating costs and re-evaluate our assets. Last month we announced a private financing transaction for $250 million in senior unsecured notes and warrants. We also recently announced that we are exploring the possible sale of our ownership interest in New England Sports Ventures, LLC. We expect the suspension of the dividend, coupled with our other actions, will help us decrease debt and improve the liquidity of the Company, a difficult but prudent measure in this operating environment."

In December, The New York Times Company announced that it was borrowing $255 million against the value of the building to keep its operations going.