NYT faces second activist investor in 3 years as Fivespan takes stake

NEW YORK: Investment firm Fivespan Partners has built a position in New York Times Company common stock and plans to push for changes, according to two sources familiar with the matter, making this the second time in three years the newspaper has faced an activist investor.

Fivespan founders Dylan Haggart and Sarah Coyne are back at the New York Times with suggestions that artificial intelligence could expand the media company’s subscription base, a person familiar with their thinking said.

In 2022, when they were partners at ValueAct Capital, they spearheaded the investment firm’s campaign at the media company, urging management to bundle its offerings for faster growth.

Bloomberg first reported Fivespan’s new stake on Tuesday.

Representatives for Fivespan and the New York Times declined to comment.

The New York Times stock price climbed nearly 1 percent shortly after Tuesday’s opening and has gained 87 percent since August 2022, when ValueAct first became involved.

The New York Times has said it is already integrating AI in the newsroom, including to analyze data and help write article summaries.

The New York Times Company has a dual-class share structure to ensure editorial independence and long-term strategy, with Class A shares held by the public and Class B shares controlled by the Ochs Sulzberger family through a trust. Fivespan was launched last year by Haggart and Coyne.