Mexican multi-billionaire buys into New York Times
Not good times for one of the largest and most important newspapers in the world. After it was announced a few days ago that the New York Times was shutting down its distribution company, putting 550 employees out of work, the ownership structure of the paper has now changed. Mexican multi-billionaire Carlos Slim has acquired a stake in the US newspaper's listed publishing house. It is purely a financial investment, he said.
Not good times for one of the largest and most important newspapers in the world. After it was announced a few days ago that the New York Times was shutting down its distribution company, putting 550 employees out of work, the ownership structure of the paper has now changed. Mexican multi-billionaire Carlos Slim has taken a stake in the US newspaper's listed publishing house. At a press conference in Mexico City, Slim explained that it was purely a financial investment. The current share price is attractive.
The Mexican, who is one of the richest people in the world, bought a share of
6.4 percent in the traditional publishing house, which is controlled by the Ochs-Sulzberger publishing family. The publishing house is suffering from a falling share price and declining advertising revenues in the print business.
Slim's surprising investment increases the pressure on the publishing family. It was only in the spring that it was forced to give the financial investors Harbinger Capital and Firebrand Partners two seats on the Board of Directors. The investment firms are the largest shareholders after the family and are demanding a change of course and higher profits. Slim is now one of the largest shareholders with his stake announced on Wednesday. It remains to be seen whether he wants to interfere in the ongoing business or is simply speculating on a share price gain.
According to a list published by the US magazine Forbes, Slim is the second richest person in the world behind US investor Warren Buffett, with an estimated family fortune of around 60 billion dollars. Among other things, he controls South America's leading mobile phone provider América Móvil.
The NYT Group lost almost 30 percent of its stock market value within a year.
For the first time in its history, it cut jobs in the editorial department this year. The newspaper is also under pressure from the Wall Street Journal, acquired by media mogul Rupert Murdoch, which has set itself the goal of increasingly competing with the New York Times.
The Mexican, who is one of the richest people in the world, bought a share of
6.4 percent in the traditional publishing house, which is controlled by the Ochs-Sulzberger publishing family. The publishing house is suffering from a falling share price and declining advertising revenues in the print business.
Slim's surprising investment increases the pressure on the publishing family. It was only in the spring that it was forced to give the financial investors Harbinger Capital and Firebrand Partners two seats on the Board of Directors. The investment firms are the largest shareholders after the family and are demanding a change of course and higher profits. Slim is now one of the largest shareholders with his stake announced on Wednesday. It remains to be seen whether he wants to interfere in the ongoing business or is simply speculating on a share price gain.
According to a list published by the US magazine Forbes, Slim is the second richest person in the world behind US investor Warren Buffett, with an estimated family fortune of around 60 billion dollars. Among other things, he controls South America's leading mobile phone provider América Móvil.
The NYT Group lost almost 30 percent of its stock market value within a year.
For the first time in its history, it cut jobs in the editorial department this year. The newspaper is also under pressure from the Wall Street Journal, acquired by media mogul Rupert Murdoch, which has set itself the goal of increasingly competing with the New York Times.
