By: Staff Reports
New York Times Co.’s Internet Division Gets $40 Million
Times Company Digital (TCD) yesterday announced that venture capital firms have invested
$40 million in The New York Times Co.’s Internet division.
Flatiron Partners, Highland Capital Partners, and Chase Capital Partners acquired $40
million worth of three-year convertible debt that is convertible to TCD’s new Class C stock.
The Class C stock is the yet-to-be-released tracking stock that TCD registered with the
Securities and Exchange Commission on Jan. 28 for an initial public offering. Terms of the
investment were not disclosed.
TCD also created an advisory board that includes partners from the capital firms. Jerry
Colonna, managing partner of Flatiron Partners, and Daniel Nova, managing general partner of
Highland Capital Partners, were appointed to the new board. Martin Nisenholtz, CEO of TCD,
also named the other advisory board members including: Red Burns, chair of the Interactive
Telecommunications Program at New York University; Mark Walsh, CEO of VerticalNet Inc.;
Arthur Sulzberger, Jr., chairman of the The New York Times Co. and publisher of its flagship
daily; Russell T. Lewis, president and CEO of the Times Co.; and Howell Raines, editorial page
editor of The New York Times.
The New York Times Co. is the first newspaper company to register a tracking stock for its
Internet division. Industry observers are watching closely to see whether or not newspapers’
online businesses can stand alone on Wall Street. Knight Ridder also has hinted towards a
tracking stock for its recently created KnightRidder.com.
(c) Copyright 2000, Editor & Publisher