Posts Tagged ‘Carlos Slim’
There are weeks when it feels as though the demise of print suddenly accelerates and this might be one of them.
After more than a year of refusing to cut its dividend — it finally did so back in November — the New York Times Co. has decided to do away with it altogether, though the term they are using is “suspend.” In a month long period that has seen the Times borrowing $260 million from Mexican billionaire Carlos Slim, and selling a portion of its new building, this is just further evidence of the paper’s financial struggles. One wonders at what point a seven dollar a month online subscription fee stops seeming sacrilegious.
Meanwhile, more magazine companies have announced they are abandoning the MPA ship.
Looks like the NYT Co. may be outsourcing its financial struggles! The WSJ is reporting the company is in talks with about Mexican billionaire Carlos Slim “investing in the newspaper publisher to help ease its financial problems.”
The talks are ongoing and may yet fall apart but one of the options being discussed is a preferred-stock issue. Under this scenario, the Times Co. would issue Mr. Slim preferred stock, which carries no voting right but pays an annual dividend, in return for his investment. The investment would be similar to a loan. Preferred shares are often convertible into common stock after a defined period.