New York Times Seeks Mexican Bailout

I guess you could say they have Slim hopes of survival.

The embattled New York Times Co., trying to wriggle out from under a pile of debt as advertising revenue dries up, is talking to Mexican billionaire Carlos Slim about making a sizeable cash investment in the company.

Slim, said to be the world's second-richest person with $60 billion, bought a 6.4 percent common share stake in the Times Co. in September for about $118 million, but is interested in gaining a larger share of the company, according to a report last night in The Wall Street Journal.

The 68-year-old telecommunications tycoon is said to be discussing a large purchase of preferred shares. The talks are ongoing and may fall apart, as they probably would need the consent of the Sulzberger family, including publisher Arthur Sulzberger, who control the media powerhouse through its ownership of preferred shares.

I wonder if the Sulzbergers invested with Bernie Madoff? Whatever the case, things are bleak for the former paper of record.

The newspaper has made some drastic moves recently to increase cash flow and to raise the needed money, including:

* An ongoing attempt to raise $225 million by selling its 58 percent stake in the new 52-story Midtown skyscraper and then leasing the office space.

* Putting its 17.5 percent stake in New England Sports Ventures, the parent of the Boston Red Sox, on the block. That could raise about $150 million.

* Layoffs and buyouts at the flagship New York Times and its Boston Globe property.

* Cutting back its dividend to investors for three years.

* The recent move to reduce the number of standalone sections and to sell advertising for the first time on Page 1 of the Times.