Over the years there have been several overtaking deals in the global commercial world. Let us have a look at the major deal of the month.
In the global commercial world, overtaking and acquisition are common features but all of them do not make news. However if it comes to acquisition of 141 year old newspaper then it will certainly have the potential to make frontline global news.
It is not very often that financially solvent and secure global companies tend to intervene into the rather insecure arena of media business. However, that is what one of the leading business houses of Boston, the Red Sox has decided to do. Recently, the principal owner of Red Sox, John Henry entered into an agreement that will bring the 141 year old newspaper with its affiliated organizations and websites under the fold of Red Sox.
It seemed rather unusual step on part of a businessman who is rather publicity shy despite having a long history of bold bets and getting involved in to risky albeit highly rewarding business propositions. In any case the $70 million deal is the first entry of Henry in the world of news media.
“The Boston Globe’s award-winning journalism as well as its rich history and tradition of excellence have established it as one of the most well respected media companies in the country,” Henry said in a statement referring to the fact that journalists and press employees play a vital role in the business world of Boston, New England as well as places beyond it.
It might interest readers to learn about certain facts about the background of Henry the eminent businessman. Now 63 years old, he made a fortune in not only in respect of investment funds but also by building up a sports empire in New England lead by Red Sox.
The sports empire of Henry includes New England Sports Network, Liverpool Soccer Club as well as the Roush Fenway Racing besides the Red Sox.
Reaction of Globe owner and employers were interesting as well. “We are excited about the prospect of working with John Henry and committed to giving Boston and New England high-quality news, information, and entertainment for years to come,” said Christopher M. Mayer, Globe publisher and president of New England Media Group.
Henry, who hails from a soybean farmer family that turned his knowledge and expertise of agricultural crops into complex commodity investment business, gradually turned the business into a $2.5 billion enterprise. Besides managing a roaring business the company also won two World Series Championship that acquired for it fame and recognition.
In a press meet announcing the deal, Henry also outlined his future plans about Boston Globe. “This is a thriving, dynamic region that needs a strong, sustainable Boston Globe playing an integral role in the community’s long-term future,” he said. At the same time he also assured to give more details about his plan in future.
He certainly has some more plans in mind and that is why he did not go back in besting over half a dozen industrial bidders that placed stakes to win over Boston Globe.