Thread: NY Times wants a Mexican billionaire's bailout!

New York Post

BROTHER, CAN YOU SPARE A TIMES

By RICHARD WILNER

January 18, 2009 --

The embattled New York Times Co., trying to wriggle out from under a pile of debt as advertising revenue dries up, is talking to Mexican billionaire Carlos Slim about making a sizeable cash investment in the company.

Slim, said to be the world's second-richest person with $60 billion, bought a 6.4 percent common share stake in the Times Co. in September for about $118 million, but is interested in gaining a larger share of the company, according to a report last night in The Wall Street Journal.

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

http://www.nypost.com/seven/01182009/ne ... 150654.htm

Relegate that terrorist spokes piece to the bottom of the trash bin or for use as a liner for my cat's litter box which is the only use for that reconquista waste of paper.