New York Times Co. in Talks With Carlos Slim on Preferred Stock Investment -from WSJ.com
“The talks are ongoing and may yet fall apart but one of the options being discussed is a preferred-stock issue.”A set up like this would make the Mexican Billionaire one of the largest shareholders of NYT stock. He already own 6.4% of the common stock. The preferred stock would make Slim more than just a common shareholder, but a stakeholder with leverage. MXTimes.com here we come?
Which begs the question: Why are Americans investors not interested in The Grey Lady? Why is Slim the only one seeing opportunity here?
UPDATES:
Will Carlos Slim Save The New York Times? -from BusinessWeek.com
How independent will these publications remain? KGB? WTF?
” London’s 171-year-old Evening Standard is nearing a deal to sell a controlling stake to Alexander Lebedev, one of Russia’s richest men (and a former KGB agent). Lebedev has also discussed the possibility of buying British national newspaper The Independent as well.”
UPDATE: January 20, 2009
Slim Lends New York Times $250 Million as Sales Fall -from Bloomberg
“While it provides some breathing room, this investment doesn’t solve the longer-term issues facing the newspaper industry,” said Fitch Ratings analyst Mike Simonton in Chicago. “It will be even more challenging for the company to generate positive free cash flow in 2009 with this new, heavy interest burden.”
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