(Finance) – Theactivist investor ValueAct bought more than 11 million shares of the New York Times, the largest newspaper in the world (listed on the New York Stock Exchange). It’s about a 6.7% stake, according to a filing with the SEC. The investment company believes that the current valuation does not reflect growth prospects long-term development of the company and that management has several opportunities to offset the macroeconomic headwinds facing the sector.
“We are aware that ValueAct has made an investment in the company – said a spokesperson for the New York Times in a statement – As we do with other shareholders, the members of our management team have had conversations with ValueAct to hear their views and share ours“.
The key to the growth of the New York Times will be one most aggressive promotion of all its subscriber-only productsalso through packages that combine multiple products (such as the Athletic online sports newspaper, crosswords and games, editorial products relating to cooking).
“Our research suggests that the majority of current readers and subscribers are interested in a package and would pay a big premium, but they don’t even know the offer exists“ValueAct said in a letter to investors viewed by Bloomberg.” This is an opportunity that we believe management needs to urgently lead, as it is the greatest leverage to accelerate growth, deepen the competitive moat of the NYT and ensure the long-term strength and stability of the platform, “he added.
According to the activist investor, “a generational change where U.S. consumers prefer to digitally consume high-quality news – through websites, social media channels, mobile apps, podcasts, email newsletters, push alerts – which can only be fulfilled by a large-scale franchise with a brand as trusted as NYT “.
“This change creates enormous competitive pressure – reads the document – While most of its fragmented competition faces growth challenges, the NYT is building a bigger, more profitable and more defensible business“.
Take flight New York Timeswhich stands at 35.19, with an increase of 11.04%. Operationally, expectations are for a continuation of the day in a positive sense with resistance seen in the 36.49 area and subsequently at 40.12. Support at 32.86.