Jeanfromfillmore
05-07-2010, 12:44 PM
Slim Doubles Down on The NYT
By Don | May 7, 2010
Mexican billionaire Carlos Slim must see a future in newsprint as he has reportedly doubled his stake in the ailing New York Times.
From the New York Post
MEXICAN billionaire Carlos Slim is wheeling and dealing his way through the media world.
According to people familiar with the matter, Slim is sinking more money into The New York Times Co., doubling his current 7 percent stake, while also visiting the offices of Newsweek, the Washington Post-owned newsweekly that was put up for sale earlier this week.
The expanded investment in the Times makes Slim its largest independent shareholder, after the previous biggest shareholder, Phil Falcone's hedge fund Harbinger Capital, sold 4.75 million shares last month.
Slim already has deep ties to the Times as a result of his $250 million, high-interest loan to the company in January 2009 and the warrants he holds that enable him to buy up to 18 percent of the company's common stock.
The Times declined to comment. Slim did not respond to a request for comment.
Slim has taken over failing businesses before and truned them around but investing in the news business may be one of his riskiest bets yet. The Times will likely be a survivor in some form but Newsweek is destined to be a money pit and Slim would be wise to avoid that publication at all costs.
http://www.aim.org/don-irvine-blog/slim-doubles-down-on-the-nyt/
By Don | May 7, 2010
Mexican billionaire Carlos Slim must see a future in newsprint as he has reportedly doubled his stake in the ailing New York Times.
From the New York Post
MEXICAN billionaire Carlos Slim is wheeling and dealing his way through the media world.
According to people familiar with the matter, Slim is sinking more money into The New York Times Co., doubling his current 7 percent stake, while also visiting the offices of Newsweek, the Washington Post-owned newsweekly that was put up for sale earlier this week.
The expanded investment in the Times makes Slim its largest independent shareholder, after the previous biggest shareholder, Phil Falcone's hedge fund Harbinger Capital, sold 4.75 million shares last month.
Slim already has deep ties to the Times as a result of his $250 million, high-interest loan to the company in January 2009 and the warrants he holds that enable him to buy up to 18 percent of the company's common stock.
The Times declined to comment. Slim did not respond to a request for comment.
Slim has taken over failing businesses before and truned them around but investing in the news business may be one of his riskiest bets yet. The Times will likely be a survivor in some form but Newsweek is destined to be a money pit and Slim would be wise to avoid that publication at all costs.
http://www.aim.org/don-irvine-blog/slim-doubles-down-on-the-nyt/