Shares in the New York Times Co. surged in after-hours trading after the company announced it's putting its nine network-affiliated TV stations on the block.
The New York Times owns four CBS affiliates, two NBC affils, two ABC affils and one station affiliated with News Corp.'s MyNetworkTV. The broadcast unit accounts for 4% of the Times' revenue, the company said.
Publisher Arthur Sulzberger and chief exec Janet L. Robinson told staff in a memo that the sale would allow the company to focus on integrating print and expanding digital initiatives.
"This makes the most sense for our company, and it will enable us to make the best use of our considerable journalistic and financial strengths," they said.
Stations in smaller markets have been saddled with a slow-growing ad market for several years. None of the stations going on the block is in the top 20 media markets; they include stations in Memphis, Tenn.; Norfolk, Va.; Des Moines, Iowa; and Scranton, Pa.
News was announced after the close of the New York Stock Exchange, but Times shares rose 86¢ or 3.9% in after-hours trading.
The Broadcast Media Group is expected to generate $150 million in revenue and $33 million in operating profit this year.
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