Yesterday we told you that the New York Times Co. was under even more pressure to cut its big dividends to shareholders after, among other things, a steep drop in advertising sales. As of yesterday the ratings agency Moody’s was threatening to downgrade the NYT Co. status to junk, and overnight Standards & Poors did just that, causing the stock to fall nearly 4 percent in late trading. (We asked our usual source what the difference was between the two companies. Answer: There isn’t, both are equally influential.)
Up until now the Sulzbergers have actually been increasing dividends. It’s unclear how the Times Co. will be able to dig themselves out of this mess but now that Michael Bloomberg has got the green light for a third term as mayor they may have fewer options to choose from.