New York Times sells Boston Globe company for $70 million -- after buying it for $1.1 billion

Like most newspapers, The Globe has struggled to hold onto its readers and the print advertisers who fed its profits for decades. According to the Alliance for Audited Media, circulation at The Globe from Monday through Friday declined 38 percent in 2013 from 2003, to 245,572 from 402,423. Before the Times Company bought The Globe in 1993, The Globe had a weekday circulation of 506,996.

As circulation declined, so did advertising. According to the second-quarter earnings statement released by the Times Company on Thursday, advertising revenue for the New England Media Group dropped 9.5 percent, to $44.4 million, compared with the same quarter in 2012.

After the release of the company’s earnings, John Janedis, a research analyst with UBS, said it was wise for the company to sell The Globe. He estimated that the paper was worth $150 million to $175 million on a cash flow basis without factoring in pension liabilities.

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