“Today’s decision provides the Company with additional financial flexibility given the current economic environment and the uncertain business outlook,” NYT chairman Arthur Sulzberger, Jr., said in a statement.
He also outlined the Times’ other cash-saving measures.
“Last month we announced a private financing transaction for $250 million in senior unsecured notes and warrants. We also recently announced that we are exploring the possible sale of our ownership interest in New England Sports Ventures, LLC. We expect the suspension of the dividend, coupled with our other actions, will help us decrease debt and improve the liquidity of the Company, a difficult but prudent measure in this operating environment.”
The move comes the same day the NYT’s stock price hit a staggering low, $3.46, and closed at $3.51. According to Google Finance, that’s a price the stock hasn’t seen (split adjusted) since 1982 — 10 years before this picture of Sulzberger was taken.
As we noted last night, the NYT’s stock is now cheaper than the Sunday paper.