New York Times Co. agreed to sell its New York City radio-station license to Univision Communications Inc., in a deal that will net the publisher $45 million as it seeks to stabilize its finances.
The spot on the dial will be converted from a classical-music station to Spanish-language programming, but under a three-way transaction, the classical format will continue, further up the dial under public-radio ownership.
Under the terms of the deal, announced Tuesday, Univision Radio will pay Times Co. $33.5 million for the Federal Communications Commission license, equipment and signal of WQXR-FM, its classical music station in New York. As part of the deal, Univision will give Times Co. the license and transmitting equipment for a less powerful station, which Times Co. will then sell -- with the QXR call letters and brand -- to WNYC Radio for $11.5 million.
Univision Radio will move its WCAA station to the stronger signal in a deal Univision executives said will allow it to expand its coverage of New York's Hispanic population.
The transaction, expected to close by year's end, continues Times Co.'s efforts to shed non-core assets at a time when steep declines in advertising have squeezed the New York Times's profit and hampered the company in managing its long-term debt.WQXR's classical format will find a new home on public radio, but with its new, weaker signal, many fans might not be able to hear it. The signal won't be as strong as it is at present in parts of Long Island and New Jersey, for example.
WQXR, which has broadcast classical music for 73 years, "is the nation's pre-eminent classical music station," said Janet Robinson, president and chief executive of Times Co., in a statement. "We are very pleased that this transaction will preserve WQXR's ability to serve New York City's classical music audience and its cultural institutions as a public radio station."
Just 275 of the nation's 13,000 radio stations carry classical music, but their listeners tend to be well-educated, relatively wealthy and loyal. When Washington, D.C.. public-radio station WETA dropped the classical format for news and talk in 2005, its ratings dropped. It returned to classical music in 2007.
Public radio organizations are building up networks of stations, realizing many of the same efficiencies as commercial radio station groups, such as the ability to cross-sell on-air sponsorship slots. American Public Media's Minnesota Public Radio is perhaps the best-known example, operating a network of 38 stations in the region. WNYC works with New York Times Co. and other partners on the public radio morning news show "The Takeaway," which will be unaffected by the sale of WQXR.
Times Co. posted a loss of $74.5 million for the first quarter as advertising revenue fell 27% from a year earlier. The company had over $1 billion in debt and $33.6 million in cash at the end of the quarter.
In March, Times Co. sold the TimesDaily, an Alabama newspaper that is part of the company's Regional Media Group, for $11.5 million. Currently it is shopping the Boston Globe as well as Times Co.'s nearly 18% stake in the holding company of the Boston Red Sox.
