A group of Boston-area investors has said it will soon make an offer to buy the Boston Globe from the city-based newspaper's owner The New York Times.
The group '2100 Trust' has more than a dozen investors and management specialists and is led by Aaron Kushner, owner of a greeting card company.
The 2100 Trust said it is interested in acquiring the entire New England Media Group unit, which includes the Boston Globe, its website Boston.com and a central Massachusetts newspaper, the Worcester Telegram & Gazette.
"The Boston Globe has been a pillar in the city, the Commonwealth and the region for more than a century. We believe that The Boston Globe's strongest days can be ahead," Kushner said.
Kushner, 37, declined to disclose the potential price for his purchase and added that the investors expect to raise enough money to make it attractive to the Times Co.
He said the Group will invest significantly in New England's largest newspaper, starting with the newsroom.
"We are putting together the business model of taking what is an important community organisation and reverse the cycle and have it growing," he said.
The group intends to make 'significant' long-term investment in the newspapers and 'one of the principal areas of investment will be the newsroom, which is due for a significant increase.' Globe publisher Christopher Mayer said that the Times Co has not been approached by 2100 Trust.
Mayer added that the Globe has been doing better financially.
"While we cannot stop others from having interest in our business, I am viewing any potential outside interest in the Globe as a reaffirmation that we are doing all the right things and moving the business forward," Mayer said.
Times Co spokeswoman Abbe Serphos said in a statement that the company does not comment on 'rumours' of acquisitions or divestitures.
"The Boston Globe is an important part of The New York Times Company.
The Globe has made excellent progress and is on solid financial footing. Its continued digital and print progress signals a strong future," Serphos said.
Like several US newspapers, the Globe has been struggling with drop in advertising revenues, decline in circulation and shift of readers to free news online.
The Times Co, whose holdings include The New York Times and International Herald Tribune in addition to The Boston Globe, had last year put the Boston Globe up for sale but failed to receive satisfactory bids for it.
The Times Co had bought the Globe for $1.1 billion in 1993 and the Telegram & Gazette, the largest daily in central Massachusetts, for $295 million in 2000.
