The Mexican Billionaire and the Old Gray Lady

The Wall Street Journal reports the NY Times Company is in talks with Mexican billionaire Carlos Slim about increasing his investment in the company. While it's unclear whether a deal will be made, one option is that "the Times Co. would issue Mr. Slim preferred stock, which carries no voting right but pays an annual dividend, in return for his investment"—in other words, it would be a loan. The NY Times Co.'s financial woes have been more publicized in recent months: It took a $225 million mortgage on its headquarters, is putting up its share of the Red Sox for sale, and started putting ads on page A1; the Post eagerly adds that the Times' "$400 million credit line expires in May." (The Post also loves the Times' apparent whining re: Obama access.) Slim is the second richest person in the world after Warren Buffett; a NY Times Co. special board meeting to discuss the matter is planned for this week.

Contact the author of this article or email tips@gothamist.com with further questions, comments or tips.

By Jen Chung in News on January 18, 2009 5:52 PM

Comments [rss]

Felix Hoenikker

?Donde esta la biblioteca?

jchez

Like all previous non-Sulztberger-family investors before him, Slim will soon realize that investing in the New York Times is a sucker's bet. The family keeps all voting rights and control but takes investor's money and gives them a middling return. It's absurd.

NannyState

You gotta believe that Mike Bloomberg's up in his vulture's nest waiting for this one to finally drop...

NannyState

Yeah, and there would be the usual half-assed joint ventures that result in fewer viewers, fewer readers, and escalating costs. Carlos would be better off buying the NYT's portion of the Bosox rather those Slim pickings at the Times Tower.

FelixtheCat & Christine Quinn'

The principal cause of poverty in Latin American is the very conditions that facilitate the growth of billionaires. In the case of Mexico, the privatization of the telecommunication sector at rock bottom prices, resulted in the quadrupling of wealth for Carlos Slim Helu, the third richest man in the world (just behind Bill Gates and Warren Buffet) with a net worth of $49 billion USD.