The NYT reported today:
The New York Times Company said Monday it had reached an agreement with the Mexican billionaire Carlos Slim Helú for a $250 million loan intended to help the newspaper company finance its businesses. ...
The deal comes as the Times Company looks to raise money amid flagging advertising sales and approaching deadlines to pay back $1.1 billion in debt in the next few years. ...
Mr. Slim will receive no representation on the company’s board or any shares with special voting rights like those of the Sulzberger family, which controls the company. Nonetheless, when Mr. Slim exercises the warrants, he will be among the largest single shareholders in the Times Company, owning up to 17 percent of the common shares outstanding.
The Sulzberger family members own about 19 percent of company and control it with a special class of voting shares.
Mr. Slim, one of the wealthiest people in the world, controls phone companies and has major investments in retailing, construction, banking, insurance, railroads and mining. In March, Forbes magazine estimated his fortune at $60 billion.
Mr. Slim first approached the Times Company in November, people briefed on the discussions said.
The net present value of the New York Times' expected future cash flows isn't worth all that much, but, if you already have tens of billions of dollars, it sure could come in handy to have the NYT on your side.
My published articles are archived at iSteve.com -- Steve Sailer
"intellectual nonproperty"
ReplyDeleteWhat?
Why did Sulzburger do this? Was he really broke and desparate, or does he think he can handle the Lebanese influence?
ReplyDeleteSteve,
ReplyDeleteHelp Ryan McMacken figure it out.
--Senor Doug
I wish the world's most glorifies blog would just go bankrupt and stop publishing online and in print.
ReplyDeleteThe future of the media business looks a lot like its past. In the 18th Century, writers didn't have good ways to get reliable cash streams from their intellectual nonproperty, so they were constantly working to get rich people as patrons.
ReplyDeleteThey also often combined technical skills such as printing and engraving with writing, and then in the 18th century the telegraph became hugely important. I think technical skills will give writers an advantage in the 21st century until a new, comprehensive system of media distribution is worked out.
Why did Sulzburger do this? Was he really broke and desparate, or does he think he can handle the Lebanese influence?
ReplyDeleteWhat influence? Without voting shares Slim is just another patsy.
On this one, I'm rooting for Carlos Slim. It's high time Sulzberger and Co. got their comeuppance. And if it ruins the NYT's credibility, so much the better.
ReplyDelete