January 21, 2009
New York Times Finds a Sugar Daddy
Carlos Slim loaned $250 million to the New York Times to keep it going, for now. It was not much of a deal. The note pays 14 percent (three percent is optional pay-in-kind junk) and comes with warrants, convertible into common (I assume they are out of the money but I do not know). Slim already owns 6.4 percent of Times common (the limited voting stuff), for which he paid $128 million -- it is now worth $58 million. The messages?? 1) The private market would not take 14 percent notes? Whew. The New York Times is in deep trouble. 2) Foreign investors are suckers. When foreign investors appear to buy American name brand assets -- the Empire State Building, Pebble Beach Gold Course, the NY Times - they, like 60 year old rich folks buying old muscle cars from the 60s at Barrett Jackson auctions, lose their bearings and pay too much -- for the hobby of it all. We will wait in vain for the financial columnists of the NY Times to comment. Gretchen, got a view?
January 21, 2009 | Permalink
TrackBack URL for this entry:
Listed below are links to weblogs that reference New York Times Finds a Sugar Daddy: