New York Times Co. shares higher on Slim rumors

Sep 08, 2010
Shares in The New York Times Co. soared on Wednesday on a resurgence of rumors that Mexican billionaire Carlos Slim may increase his holdings in the newspaper giant.

Shares in The New York Times Co. soared on Wednesday on a resurgence of rumors that Mexican billionaire Carlos Slim may increase his holdings in the newspaper giant.

Times Co. shares gained 7.99 percent in heavy trading to close at 8.38 dollars on Wall Street.

"The rumors are that (Slim) will take a bigger stake," said Gregori Volokhine of Meeschaert New York.

Slim extended a 250-million-dollar loan to the Times Co. in January last year and owns slightly less than seven percent of the Class A shares in the company.

Slim has previously denied any interest in making a bid for the Times Co. and financial analysts noted that a takeover would be extremely difficult since the Sulzberger family owns the vast majority of the controlling Class B shares.

The Times Co. reported a slight increase in quarterly revenue in July as double-digit growth in digital advertising helped offset a continued slide in .

The Times Co., which owns The , International Herald Tribune and other newspapers in addition to the flagship , said revenue rose 1.2 percent in the second quarter to 589.6 million dollars over a year ago.

declined to 32 million dollars from 39 million dollars a year earlier.

In addition to obtaining a loan from Slim, the Times Co. last year also entered into a sale-leaseback agreement for part of its Manhattan headquarters in a move aimed at raising cash to pay down its debt.

Like other US newspapers, the Times has been struggling with a steep decline in print , falling circulation and the migration of readers to free news online.

Explore further: IBM posts lower 1Q earnings amid hardware slump

add to favorites email to friend print save as pdf

Related Stories

NY Times selling radio station for 45 mln dlrs

Jul 15, 2009

The New York Times Co., which has been seeking to raise cash to pay down its debt, announced plans on Tuesday to sell a New York City radio station for 45 million dollars.

Washington Post stems tide of red ink

Jul 31, 2009

The Washington Post Co. reversed its slide and posted a quarterly profit on Friday despite a steep decline in advertising revenue at its flagship newspaper.

Cost-cutting at NY Times, reorganization at WPost

Apr 16, 2009

The New York Times unveiled plans on Thursday to eliminate several weekly sections of the newspaper in the latest cost-cutting move at the prestigious but financially troubled daily.

Scripps up sharply on Wall St on surprise profit

Aug 10, 2009

US media company EW Scripps Co. reported a surprise quarterly net profit on Monday, despite a 29 percent decline in advertising revenue, sending its shares sharply higher on Wall Street.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

3 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

10 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

13 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

IBM posts lower 1Q earnings amid hardware slump

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

Down's chromosome cause genome-wide disruption

The extra copy of Chromosome 21 that causes Down's syndrome throws a spanner into the workings of all the other chromosomes as well, said a study published Wednesday that surprised its authors.