Investor Says New York Times Can Boost Digital Sales with Subscriber Bundles

The New York Times could possibly do better on digital sales with more subscriber-only bundles, according to activist investor ValueAct Capital Management, a report from Bloomberg said.

In a letter to investors Thursday (Aug. 11), ValueAct said it now owns a 7% stake in the Times, and said it thinks the current valuation doesn’t reflect the long-term growth potential for the company in almost any economic environment.

ValueAct said management could have several ways to do better.

That could involve a more aggressive rollout of its subscriber products, including the Athletic, crosswords and games, cooking and news.

“Our research suggests that most current readers and subscribers are interested in the bundle and would pay a large premium for it but are not aware the offering even exists,” ValueAct said in the letter, according to the report. “This is an opportunity we believe management needs to drive with urgency, as it is the biggest lever to accelerate growth, deepen NYT’s competitive moat, and ensure the long-term strength and stability of the platform.”

ValueAct reportedly thinks that in the long run, the Times could see “strong double-digit digital revenue growth” with margins expanded by three times or so. The company said the NYT might be “one of the few consumer subscription businesses well positioned for the current environment.”

“They are in the early innings of penetrating a large, addressable market, can sustainably increase their customer lifetime value, are already solidly profitable, and have a much more attractive competitive environment,” ValueAct wrote.

See also: ValueAct Joins Fiserv Board, Wants to ‘Aggressively Invest’ in Clover

ValueAct also got a seat on the board for Fiserv due to a settlement with the Fintech and payments firm, PYMNTS wrote in February.

Fiserv said it had appointed Dylan Haggart, a ValueAct partner, to the board.

ValueAct said it had a stake in the company last year, and said it thought the company’s Clover credit card processing business might be worth $185 billion by 2024.