Wednesday, September 14, 2011

Unlocking Value at The New York Times (NYT)

A while back activist investor and legendary hedge fund Harbinger Capital agitated for change at The New York Times. The campaign ultimately failed and Harbinger lost much of its AUM.

I have been conducting some research in NYT and believe that it is undervalued based on its long-term growth in online media. While I am doubtful that an activist will get involved in the stock again, I think that it would end up being a successful campaign if one were ever launched. A few key decisions could go a long way to unlocking shareholder value: cutting costs, spinning off assets, and moving to online media.