10-Q Watch: NYTCO: $1.9 Million Invested In QuadrantOne; Newspaper Buy; Epsilen; Debt Rating

This story was written by Joseph Weisenthal.

-- QuadrantOne: "In February 2008, the Company invested $1.9 million for a 25% ownership interest in quadrantONE LLC, a consortium online advertising network that sells bundled premium, targeted display advertising from local newspaper Web sites and other affiliates."

-- Other deals: "In March 2008, we acquired certain assets of the Winter Haven News Chief ("News Chief"), a regional newspaper in Winter Haven, Fla., for $2.5 million.  Also in March 2008, we purchased additional Class A units of BehNeem, LLC ("BehNeem"), increasing our total investment to $4.3 million for a 53% ownership interest." The company had already held a stake in BehNeem, a company that licenses tools for online education content. The company operates the Epsilen online education tools and social networking tools service.

-- Debt rating downgrade: On the recent adjustment from S&P, the company isn't particularly concerned: "We have no liabilities subject to accelerated payment upon a ratings downgrade and do not expect the downgrades of our long-term and short-term debt ratings to have any material impact on our ability to borrow.  However, as a result of these downgrades, we will incur higher borrowing costs in respect of any future long-term and short-term issuances.  We do not currently expect these to be significant."

By Joseph Weisenthal