NYT Shares Plunge While It Deeply Discounts MoveOn's Ad Space
Lost in the outrage yesterday over the New York Times's decision to discount its ad price for the disgraceful MoveOn.org "Betray Us" ad about General David Petraeus from at least $167,000 to $65,000 (described by NewsBusters' Brent Bozell as, in effect, co-sponsorship) was this awful financial news:
UPDATE: New York Times Reports Weak Ad Sales
CHICAGO (Dow Jones) -- Shares of New York Times Co. hit a new 52-week low Wednesday after the company reported a steep advertising revenue decline in August at the unit that includes its flagship newspaper and the Boston Globe.
Revenue at the publisher's News Media Group dropped 4.6% from the same month a year ago, to $121.5 million. Classified revenue, traditionally considered the most vital component of newspaper advertising, plunged 20% on weakness in real estate, help-wanted and automotive ads.
New York Times stock (NYT) was down marginally at $20.31 in midday trading. At one point, the shares hit a new one-year low of $20.19.
NYT's share price has dropped over 25% in the past four months, and 60% since it acquired what may end up being a terminal case of Bush Derangment Syndrome in the summer of 2002.
Long-suffering NYT shareholders surely long for their own surge. They won't get one as long as the company is willing to leave over $100,000 on the table for a politically favored advertiser.
Cross-posted at BizzyBlog.com.