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New York Times Co. Spins Off Internet Unit

The New York Times Company Monday separated its Internet holdings into its own entity, Times Co. Digital, designed to facilitate the growth of its Web companies.

The firm will consist of The New York Times Co.'s nearly 50 Web sites, including The New York Times on the Web, boston.com and New York Today, as well as the Web sites of its Regional Newspaper Group, Broadcast Group and Magazine Group.

Times Company Digital is expected to separate effective June 18, the firm said. Martin A. Nisenholtz, current president of The New York Times Electronic Media Co., will become chief executive officer.

Arthur Sulzberger, Jr., chairman of the Times Company, said that spin-off was made to allow the company's Internet holdings to grow independent of its traditional media resources.

"Because the Internet is dramatically changing the way people obtain news and information, it is essential that we continue to be a leader in cyberspace," he said.

"This step significantly advances our ability to build a high-quality, high-value Internet presence and to respond even more quickly to the fast-moving Web marketplace. By aggregating our portfolio of Internet assets into one business unit, we will sharpen our strategic focus and gain the flexibility to bring our digital future to scale."