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No, the seller is retaining responsibility for the pension. Imagine that the Globe was worth $X including pension obligations. Then the Globe unencumbered by pe
by snewman 13y ago
No, the seller is retaining responsibility for the pension. Imagine that the Globe was worth $X including pension obligations. Then the Globe unencumbered by pension obligations should be worth $X+110M. The sale price implies $X+110M = 70M, so X = -40M.
- jthol 13y agoThat's not what the article says. >That's because the terms under which John Henry is buying the paper stick the New York Times Company with the Globe's pension obligations, which are said to amount to around $110 million. Which is to say that the worth of the overall Globe enterprise is negative $40 million, not $70 million. emphasis added
- pbreit 13y agoNotice that your emphasized words clearly state that the NYT (the seller) will pay the pensions, not the Globe's new buyer. So the article is correct.