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Finance Expert: NYT Shareholders Unlikely To Object Over Manchester’s Failed Bid

Aired 8/5/13 on KPBS News.

U-T San Diego CEO John Lynch objects to the sale of The Boston Globe to John Henry, saying shareholders could block the sale.

The owners of U-T San Diego had been in the market to expand their media empire. John Lynch and Doug Manchester made a bid to buy The Boston Globe from The New York Times Company.

U-T San Diego

U-T San Diego's CEO John Lynch.

On Friday, The New York Times Company announced it was selling The Globe to the owner of the Boston Red Sox, John Henry. Henry paid $70 million cash.

Over the weekend, Lynch railed against the sale.

He told The Boston Herald that he and Manchester offered more money than Henry and would have bid even more.

Lynch did not respond to requests for comment and did not tell The Herald how much he and Manchester bid. But, he said, because he offered more money, shareholders could object to the sale.

"I’m just stunned," he told The Herald. "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.”

On Monday, The Boston Globe reported that three of the bidders said they offered more than Henry.

Nikhil Varaiya, a finance professor at San Diego State University, said it's possible, but unlikely, that some shareholders could try to block the sale.

"There's nothing to say that a shareholder cannot come out and say that they did not try to get the best deal possible," he said. "Then, in that case they have to challenge. The extreme would be to try to sue the board and the company."

Varaiya pointed out the New York Times' board of directors already approved the sale, and they would know the dollar amount of each bid.

He said it's more likely Lynch is complaining to try to get back the money he and Manchester spent preparing their bid. Lynch declined to tell The Herald whether they would sue to recoup their expenses.

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Avatar for user 'Peking_Duck_SD'

Peking_Duck_SD | August 5, 2013 at 8:38 p.m. ― 3 years, 7 months ago

Money isn't everything.

Maybe they were so put-off by the blatantly biased manner right-wing lynch and Manchester run their self-promoting "news" paper, they were willing to take less money instead of risking the The Globe from turning into a laughing stock like their flailing PRAVDA UT.

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Avatar for user 'RegularChristian'

RegularChristian | August 6, 2013 at 6:17 a.m. ― 3 years, 7 months ago

The best possible deal does not equate to the most money. Other factors are always involved. If people just kept that in mind we'd have a more civil society.

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Avatar for user 'fltnsplr'

fltnsplr | August 6, 2013 at 9:28 a.m. ― 3 years, 7 months ago

Sounds like somebody wanted to bring the Globe back to Boston, and somebody else thought that was all right. Manchester's a big fish in a small pond, and Lynch is just his puppet. They might have bought the North County Times, but Papa Doug's a day late and a dollar short in everything he tries to do. His reputation is mostly local, whereas John Henry is known internationally and is waaay smarter than Manchester.

Too bad for the small players. Next time, boys, here's a word of advice: keep your money in your pocket and keep your mouth closed. That way you won't embarrass yourselves quite so much.

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Avatar for user 'Frankie'

Frankie | August 6, 2013 at 1:48 p.m. ― 3 years, 7 months ago

Aren't hissy-fit lawsuits the regular MO for Doug Manchester when he doesn't get his way? There was no way in hell that the New York Times Company was going to release title to the Boston Globe to a cowboy like Manchester. Never happen. If there is a god, she also will watch over the potential sale of Tribune holdings and prevent their going to such a troglodyte as the man who likes to be called "Papa Doug" and cavorts with showgirls at his 70th birthday party. With luck and divine intervention, someone will preserve responsible ownership of the great Los Angeles Times.

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