Desperate Times at the NYT

The drama at the New York Times Company just got a lot more interesting. In the face of declining revenues and profits, reported earlier this week, the company announced yesterday that it would increase its dividend by almost a third (31%), from 17.5 cents a share to 23 cents a share.The move smacks of desperation, an effort to prop up a stock price that has lost more than half its value over the past five years. The stock price took a jump when trading opened this morning, but has since lost almost half of that initial gain.The company's announcement contains some very interesting language:"The strong cash flow of the Company and our current financial position, with the upcoming sale of our broadcast unit and radio station, give us the ability to return more capital to shareholders. Recognizing that the media marketplace is in the midst of an extraordinary transformation, we will continue to exercise strong financial discipline as we execute on our business strategy and allocate...(Read Full Post)