Telecoms Tycoon Takes NYT Tranche

12 September 2008

NEW YORK: The world's second richest man, Mexican squillionaire Carlos Slim, has amassed a 6.4% stake in the New York Times Company, publisher of the Big Apple's prestigious but financially frail newspaper.

The reasons for the telecom tycoon's $127 million (€91m; £72.7m) interest in the business are not immediately apparent. He insists, however, that his motives are purely financial, pointing to his track record of investing in "depressed assets" to later sell at a profit.

NYTC is controlled by the Ochs-Sulzberger family, whose super-voting shares elect 70% of the company's board, making major changes unlikely.

The company's News Media Group, whose other titles include the Boston Globe, has seen advertising revenues slump by 14% during the first half of the year, while share value has fallen 32% over the last 52 weeks.

In May, the NYT announced plans to slash 100 jobs, including some newsroom posts, and intends to consolidate some sections of the newspaper next month in an effort to save money.

Data sourced from Wall Street Journal Online; additional content by WARC staff