- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- Twilight, Inc., A Worldwide Craze
- Oprah to Leave Syndication in 2011
- Sony's E-Reader Shortage and the Digital Book Battle
- Salesforce.com Brings Facebook and Twitter's Social Capabilities to Businesses
- Sumner Redstone's Companies Face Off Yet Again
- Can YouTube Revolutionize Citizen Journalism?
- What MGM's Sale Could Say About Value of Content
More Videos
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- Can Murdoch Help Bing Challenge Google and Shift the Content Equation?
- Twilight, Inc., A Worldwide Craze
- Oprah to Leave Syndication in 2011
- Sony's E-Reader Shortage and the Digital Book Battle
- Salesforce.com Brings Facebook and Twitter's Social Capabilities to Businesses
- Sumner Redstone's Companies Face Off Yet Again
- Can YouTube Revolutionize Citizen Journalism?
- What MGM's Sale Could Say About Value of Content
RSS FEED
MOST SHARED
- Ritz-Carlton ?Struggling? in the US: President
- Garlic Price Rises Surpass Gold, Stocks in China
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Obama Reiterates Commitment to Boost US-India Ties
- Oil Price to Average $75.40 in 2010: Poll
- New-Home Sales Jump 6.2% To Highest Level in Over Year
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Consumer Mood Improves, But Anxiety Over Personal Finances
- Jobless Claims Below 500,000, Durable Orders Slip
- Americans Ditch Planes for Trains this Thanksgiving
- Treasury On Mortgage Modifications
- Blue Jeans Expected to See Another Green Christmas
- Investors Thankful for Gains This Year
- Thanksgiving & the Markets
- Art Cashin: Caution 'Growing' in Financials, Dividend Moves
- Topless Business Is Taking Off
- 3 Software Stock Picks from Lazard's Senior Analyst
- Schork Oil Outlook: Gas Bulls Pinning Hopes on Mother Nature
- Toyota Makes Recall Fix And So Long Saab
- New-Home Sales Jump to Highest Level in Over Year
- Consumer Mood Improves, But Anxiety Over Finances
- Jobless Claims Below 500,000, Durable Orders Slip
- For Many Americans, a Scaled-Down Holiday Season
- Garlic Price Rises Surpass Gold, Stocks in China
- Judge Erases Couple's $525,000 Mortgage Payment
- Black Friday: Can Banks Tap the Frenzy, Too?
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Seeking Deals, Holiday Fliers Get Early Start
Media Money
Text Size 
 |
CNBC.com |
With the Times needing to pay back $1.1 billion in debt in the next few years, rumors were swirling that the New York Times Co. [NYT
Loading...
()
] might have to file for bankruptcy. But here's a much better solution-- one of the richest men in the world, Mexican billionaire, Carlos Slim Helu is loaning $250 million in the company. (It's a drop in the bucket for Slim, who built up his $60 BILLION dollar fortune on telecom and other investments).
Slim's already demonstrated his faith in the Times -- he's owned 6.9 percent of the company since September.
The fact that the NYT stock has tumbled since then hasn't dissuaded Slim. This $250 million loan is in the form of six-year notes, with warrants that are convertible into shares. It should be worth Slim's while: the notes charge 14 percent interest (11 percent in cash, 3 percent in bonds). And these terms speak to just how much the Times needs this cash.
This cash will allow the Times to refinance its debt ahead of a $400 million revolving credit line expiring in May. Part of a larger strategy to reduce debt, the company is also looking to sell its stake in the Boston Red Sox and use its Manhattan building to borrow money.
The good news for the Sulzberger family, which owns 19 percent of the company Times, is that they won't give up control. If and when Slim exercises the warrants he'd control about 18 percent of the company, the third-largest shareholder behind Harbinger Capital Partners and the Sulzberger, who control the company through special voting shares.
The New York Times losses are getting worse and worse. Third quarter net income was down 51 percent from the year-ago quarter and month after month ad revenue losses are growing. We will see if this additional equity helps the Times get its debt in order while it works to bolster its online revenues.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes