New York Times stock jumps after activist investor ValueAct reveals 6.7% stake

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The New York Occasions constructing
Jonathan Torgovnik | Getty Photographs

Activist investor ValueAct has constructed a 6.7% stake within the New York Times, according to an SEC filing out Thursday, sending shares of the media firm up round 10% on the day.

“We’re conscious that ValueAct has made an funding within the Firm,” a spokesperson for the New York Occasions stated in a press release. “As we do with different shareholders, members of our administration crew have had conversations with ValueAct to listen to their views and share ours.”

ValueAct bought greater than 11 million shares and reportedly needs the information group to push additional into subscriber-only bundles, according to Bloomberg, who first reported the stake.

ValueAct didn’t instantly reply to request for remark from CNBC.

The New York Occasions added roughly 180,000 digital-only subscribers and 230,000 digital-only subscriptions in the course of the second quarter of 2022, reflecting customers with multiple subscription to the corporate’s merchandise, based on its earnings release out final week. The provides convey the group’s complete to 9.17 million subscribers and 10.56 million complete subscriptions throughout print and digital, together with 1 million subscribers to The Athletic, which the company recently acquired.

Digital subscription income was $238.7 million within the second quarter of this 12 months, up from 2021. These subscriptions embrace digital entry to the corporate’s information, its common cooking providing, and video games.

New York Occasions inventory was buying and selling at roughly $35 per share Thursday afternoon, its highest stage since mid-Might. The inventory is down roughly 25% 12 months up to now, and the corporate’s market capitalization at present sits at round $5.85 billion.

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