New York Times stock jumps after activist investor ValueAct reveals 6.7% stake

Activist investor ValueAct acquired a 6.7 percent stake in the New York Times, according to an SEC filing Thursday, sending the media company’s shares up about 10 percent on the day.

“We are aware that ValueAct has made an investment in the company,” a spokesperson told the New York Times in a statement. “As we do with other shareholders, members of our management team have had conversations with ValueAct to hear their views and share ours.”

ValueAct bought more than 11 million shares and reportedly wants the news organization to continue targeting subscriber-only packages, according to Bloomberg, which first reported the deal.

ValueAct did not immediately respond to a request for comment from CNBC.

The New York Times added approximately 180,000 digital-only subscribers and 230,000 digital-only subscriptions in the second quarter of 2022, reflecting users with more than one subscription to the company’s products, according to last week’s earnings release. The additions bring the organization’s total to 9.17 million subscribers and 10.56 million total print and digital subscriptions, including 1 million subscribers to The Athletic, which the company recently acquired.

Digital subscription revenue was $238.7 million in the second quarter of this year, an increase from 2021. Those subscriptions include digital access to the company’s news, popular cooking offerings and games.

Shares of the New York Times were trading at about $35 a share Thursday afternoon, their highest level since mid-May. Shares are down roughly 25% year-to-date, and the company’s market capitalization currently stands at about $5.85 billion.