Two American companies have announced they would sell major media properties over the last few days, yet the fate of the pension liabilities are different.
On Saturday, The New York Times Co. announced it would sell New England Media Group—which includes The Boston Globe—for US$70 million to a company owned by John W. Henry, owner of the Boston Red Sox.
Under terms of the sale, the new owner will not have to assume any of the pension liabilities, which are reportedly more than $110 million.
Bloomberg News reports that The New York Times Co. preferred an all-cash bid instead of one that assumed part of all of the liabilities. If the new owner were to become insolvent, New England Media Group’s pension liabilities would reportedly revert back to The New York Times Co.
Two days later, The Washington Post Co. announced the sale of The Washington Post and other publishing assets to Amazon.com founder Jeff Bezos for $250 million.
Under that agreement, Bezos will be responsible for current employees’ pension obligations. The Washington Post Co. will be responsible for past employees’ pensions and will also provide Bezos with $50 million to cover the current employees’ obligations.