Tag: New York Post

Now this is quite interesting:

The New York Times Co. is in discussions with Mexican billionaire Carlos Slim about investing in the newspaper publisher to help ease its financial problems, according to people familiar with the matter.

The talks are ongoing and may yet fall apart but one of the options being discussed is a preferred-stock issue. Under this scenario, the Times Co. would issue Mr. Slim preferred stock, which carries no voting right but pays an annual dividend, in return for his investment. The investment would be similar to a loan. Preferred shares are often convertible into common stock after a defined period.

via New York Times Co. in Talks With Carlos Slim on Preferred Stock Investment – WSJ.com (Sub Required).

Interesting…. The New York Post picks it up:

The 68-year-old telecommunications tycoon is said to be discussing a large purchase of preferred shares. The talks are ongoing and may fall apart, as they probably would need the consent of the Sulzberger family, including publisher Arthur Sulzberger, who control the media powerhouse through its ownership of preferred shares.

The preferred shares under discussion would carry no voting rights, but pay a dividend, according to the report. His current stake puts Slim among the largest non-Sulzberger owners of the Times.

The Times is under the gun to raise cash as a $400 million credit line expires in May. The recession has squeezed the paper, which reported a 21 percent drop in ad revenue in November.

The newspaper has made some drastic moves recently to increase cash flow and to raise the needed money, including:

* An ongoing attempt to raise $225 million by selling its 58 percent stake in the new 52-story Midtown skyscraper and then leasing the office space.

* Putting its 17.5 percent stake in New England Sports Ventures, the parent of the Boston Red Sox, on the block. That could raise about $150 million.

* Layoffs and buyouts at the flagship New York Times and its Boston Globe property.

* Cutting back its dividend to investors for three years.

* The recent move to reduce the number of standalone sections and to sell advertising for the first time on Page 1 of the Times.

For Slim, fattening up his stake in the Times would expand his already sizeable holdings. The mogul controls Telmex, which handles about 90 percent of Mexico’s land-based telephone service, and Telcel, which has an 80 percent market share on the country’s cell business.

In 1997, just before Apple launched its iMac line, Slim bought a 3 percent stake in the tech company at a split-adjusted price of about $4.50 a share. Apple closed Friday at $82.33.

Just Warren Buffet, worth about $62 billion, according to Forbes, is richer than Slim. Bill Gates, for years the richest man in the world, is worth about $58 billion, the magazine said.

Very interesting indeed, it is indeed a sign of the times. It does kind of bother me, that the NYT would go south of the border to get someone to put money into their company. Is there not any millionaires here in America? Where’s all those Liberal Hollywood celebrities that cater to those mindless loons that make that newspaper?

I would go off on a “Bill O’Rielly” sounding rant and say it’s because of their bias. But I won’t, because I’m just a bit more honest than that. The Economy is bad, old Media is become the thing of the past, the internet is killing traditional media. hey, times change, either you keep up or your outmoded. Just that simple.

But, damn, what the hell are they gonna call the old gray lady now? The Taco-Head Times? D’oh! 

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