Mexican Billionaire Carlos Slim Now Among Biggest NY Times Shareholders (Dinosaur Media DeathWatch™)

Editor & Publisher ^ | February 12, 2010 | Jennifer Saba

[abb]

Mexican billionaire Carlos Slim Helu isn't just one of The New York Times Co.'s creditors anymore -- he's now one of their biggest stockholders, according to a Security and Exchange Commission filing Friday.

Slim exercised warrants for 15.9 million in Class A shares for a strike price of $6.3572 through his companies Inmobiliaria and GFI, raising his stake in the Times Co. to 16.3% from 6.9% at the time he was approached to loan a substantial sum to the venerable publisher.

Slim got the warrants in January 2009 when he lent the Times Co. $250 million. The company said that that he would not be joining the board. The Class A common shares he bought is publicly traded stock, not the super-voting shares that gives the Ochs and Sulzberger family control of the company.

On Wednesday, the Times Co. announced it had tripled its profit in Q4 and indicated that advertising revenue declines were moderating. Barclays Capital released a research note upgrading the company to “overweight” due mostly to what analysts believe is a more manageable debt level.

Barclay analysts Hale Holden and Danish Agboatwala suggested on Wednesday that Slim could exercise his warrants giving the New York Times a “modest cash inflow.” It also opens the door, analysts wrote, for the Times to possibly refinance the note if Slim increased his stake in the company.

Shares of the Times Co. (NYSE: NYT) were trading down in the early afternoon 2.2% to $10.55.

[abb]

This just in!

[abb]

ping

[Billthedrill]

Yo, Pinch! Carlos needs his car waxed. Get movin’.

[KarlInOhio]

Has he also invested in White Star Line? I hear the Titanic is doing a little better than the NY Times.

[GeronL]

How long before its a penny stock?

[abb]

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[abb]

They, along with the other newspaper companies, may hang on. Much like a tuberculosis sufferer coughing up clots of blood from time to time as they stagger from crisis to crisis. Then, they finally waste away from the consumption.

[GeronL]

The NY Times should shut down the printing presses and give all paying subscribers a Kindle with their logo on it. Then again, they seem to be horrible business people.

[SanFranDan]

LMAO

[jimbo123]

Good news. More layoffs will be on the way by mid-year. Love that hope & change!

[humblegunner]

Mexican billionaire Carlos Slim

Is this dude a relative of yours?

[rovenstinez]

Lebanese Mexican, owns the telecommunications company, and a hundred other companies. Some say the assets of the former Carlos Salinas Gortari were invested safely for his watch and care.

[martin_fierro]

Mexican billionaire Carlos Slim Helu isn't just one of The New York Times Co.'s creditors anymore -- he's now one of their biggest stockholders, according to a Security and Exchange Commission filing Friday.
Slim exercised warrants for 15.9 million in Class A shares for a strike price of $6.3572

That's quite a helu kitty.

[ElPatriota]

Oh there you go Carlos... saving the Mexican economy once again! ROFL!

[Brilliant]

Hopefully this means there will be changes at the Times.

[GOPJ]

Thanks for the ping.

[bert]

He has no stake in the governance and is depending on a turnaround that will likely never come.

The world is changed.

I read local newspaper headlines on yahoo and posted to Free Republic today on my new I Phone 3g (bought on sale and obsolete). We cut loose our land lines and are now cellular/data mobile equipped. If it is to me, semiretired geezer, it is near pervasive. What was is no more

[JCG]

Slim will get slimmer because of this.

---

Send treats to the troops...
Great because you did it!
www.AnySoldier.com

[Zakeet]

Slim got the warrants in January 2009 when he lent the Times Co. $250 million. The company said that that he would not be joining the board. The Class A common shares he bought is publicly traded stock, not the super-voting shares that gives the Ochs and Sulzberger family control of the company.

It's my understanding these warrants are the sweeteners Slim received for making the loan. Pinch still has to repay Carlos the quarter of a billion or Slim will own all the family's Class A common -- as well as everything else.