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1998 was a record year for Times Mirror. * * *
Clearly our biggest accomplishment last year was the
divestiture of Matthew Bender and Mosby for over
$2 billion in value, a whopping 17 times cash flow.
These transactions eliminated a major strategic
vulnerability for the company. And because they were
done in a tax-efficient way, we can redeploy the
resources in ways that will enhance the earnings power
of Times Mirror.
In addition, the section entitled “A Crisis of Growth” contained
the following statements:
In 1998 * * * [Newsday] again increased
circulation and revenue, partly because it employed
innovative ventures to do so. * * * It has organized
a separate effort to distribute advertising shoppers
throughout Long Island and New York City and a Times
Mirror affiliate just recently acquired a chain of
weekly papers to increase Newsday’s role in printed
advertising in its circulation area.
* * * * * * *
Fortunately for a company responding to a changing
world, Times Mirror has immense resources. The sale in
1998 of the Matthew Bender and Mosby legal and medical
publishing units has given Times Mirror a gain of
$1.35 billion.
That enormous chunk of capital awaits redeployment
in Times Mirror operations or in acquisition of other
companies. * * *
* * * Times Mirror is budgeting $300 million for
acquisitions in 1999. * * *
* * * Chains of small newspapers are being
acquired in the circulation areas of Newsday and The
Baltimore Sun. Up to $50 million a year is being
invested in venture capital backing for Internet start-
ups to gain expertise and give the company expertise
and participation in developing technologies.
* * * The big $1.3-billion proceeds from the
Mosby-Bender sale would be brought into play if
newspaper acquisition opportunity came up in adjacent
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