New York Times Co shelves plan to sell the Worcester newspaper

After announcing in October that it would not sell off its troubled The Boston Globe, the New York Times Co (NYT Co.) yesterday said that it is not selling Worcester Telegram & Gazette.

The move has not surprised analysts, since the NYT Co. shelved plans to sell The Boston Globe in October after several months of scouring for buyers but failing to draw satisfactory bids.

In a statement yesterday, the NYT Co said, ''After careful consideration, we have completed the process of exploring strategic alternatives for the Worcester Telegram & Gazette and telegram.com, and concluded that these assets should remain a part of our New England Media Group. With a major restructuring of The Boston Globe behind us, we expect it to be a positive contributor to our performance in 2010."

Having lost $50 million last year, The Globe has projected an $85-million loss this year, and the NYT Co. had threatened to close down the Globe in April unless unions agreed to $20 million in concessions, which the unions finally did in June, ending three months of negotiations to keep the paper in circulation. (See: Boston Globe arrives at tentative cost-cutting deal with union)

The NYT Co then decided to sell The Boston Globe and its sister publication, and the Worcester as a package since both newspapers have their businesses and operations closely intertwined.

Three Boston businessmen had evinced interest to bid for The Boston Globe - Stephen Pagliuca, co-owner of the Boston Celtics and managing director of private equity firm Bain Capital; Jack Connors, the chairman of Partners Health Care; and Stephen Taylor, a former Globe executive and member of the family from which NYT Co bought The Boston Globe for more than $1 billion in 16 years ago. (See: NYT defers bid deadline for The Boston Globe)