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'NYT' Needs A Major Restructuring

New York Times management is finally taking the steps necessary to try to save the company. The latest move is to file a shelf registration with the SEC to permit the company to issue a variety of different securities when it feels like it.

However, this is far from the best time for NYTC to be raising cash. Three months ago, the stock was $15. Now it's just over $6. Any cash the company raises in the current environment will be outrageously expensive.

It's hard to imagine that the company will attract much interest from equity investors until it can articulate a plan for long-term survival, beyond selling off assets. Any long-range plan will need to involve a major restructuring, including a reduction in the size of the company's editorial operation by at least 40%, and eventually more, as the print business wanes.

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