Has management of New York Times Co. (NYSE: NYT) finally woken up and smelled the coffee? Not only did the third-largest newspaper publisher report awful earnings, but the New York-based company also announced that it might cut its dividend, a move that will hit the controlling Sulzberger-Ochs family where it hurts -- in the pocketbook.

Net income at the publisher of the namesake newspaper fell 51.4 percent to $6.52 million, or 5 cents a share, compared with $13.4 million, or 9 cents, a year earlier, the company said in a press release. Total revenues decreased 8.9 percent to $687.0 million from $754.4 million. Advertising revenue fell a whopping 14.4 percent as companies reduced marketing spending because of the uncertainty about the economy.

MAJOR PAPERS:

• According to people familiar with the matter, the Wall Street Journal reported that an investor group that includes Harbinger Capital Partners is expected to report a raised stake in The New York Times Company (NYSE: NYT). The raised stake is expected to be close to matching the 19% stake owned by the Sulzberger family.
• The Goldman Sachs Group Inc (NYSE: GS) has been spared many of the problems of the subprime mortgage crisis, but other areas where it's involved, such as investment banking and leveraged loans, are hurting the firms profitability, the Wall Street Journal reported.

OTHER PAPERS:

• Cablevision Systems Corporation (NYSE: CVC) is seeking to put a valuation on its Rainbow Media unit, in order to possibly sell it, sources say. In the past, the unit, which consists of several cable channels, has been valued at $3B, but the Dolan family is hoping to obtain a higher price, according to the New York Post. Possible buyers include Liberty Media Corporation (NASDAQ: LCAPA) and News Corporation (NYSE: NWS).
• Elan Corporation (NYSE: ELN) is considering splitting its biopharmaceuticals arm, which markets Tysabri, from its drug technology division, the Sunday Times noted. The potential spin-off could unlock up to $1.5B to share holders.

Ever since the New York Times broke the story about John McCain's close relationship with lobbyist Vicki Iseman, howls of outrage have been heard from one end of the right wing media world to the other. Outstanding Americans including Rush Limbaugh have accused the gray lady of publishing a partisan hatchet job on the Arizona senator who until this moment had been their public enemy no. 2 behind the mainstream media.

The story that McCain's aides tried to protect him because they were worried that their boss was having an extramarital affair with lobbyist Vicki Iseman struck a nerve. My colleague Aaron Katsman called it a "hit job", and investors who have long ago soured on newspaper stocks sent shares of the New York Times Co. (NYSE: NYT) downward. Meanwhile, a potential proxy fight looms with dissident shareholder Harbinger Capital.

But lost in the hoopla is the fact that the central theme of the story that aides were worried about McCain's relationship with Iseman during the 2000 campaign has been proven. In fact, other news organizations, including the Washington Post , were able to match the story. In fact, the Post is reporting today that McCain has some cozy relationship with other lobbyists even though he bad-mouths the profession all of the time. Both McCain and Iseman deny they had an affair or that she received any preferential treatment from the senator. Nonetheless, some former McCain aides were clearly worried about the lobbyist.

In February, Ryerson (NYSE: RYI) announced that it retained UBS Investment Bank (NYSE: UBS) to explore "strategic alternatives." Yes, Wall Street interpreted this as the prelude to a leveraged buyout.

As a result, the shares of Ryerson, which is a major distributor of metals, increased from $30 to $44.

Well, today we got the details of the deal. The price tag? $34.50. The buyer is private equity firm, Platinum Equity.

What's more, to market the deal, UBS contacted more than 50 prospective acquirers.

Interestingly enough, Ryerson has been the target of activist hedge fund, Harbinger Capital. The firm was able to elect a majority of board members to Ryerson and it was enough pressure to get a deal done.

So far today, the shares of Ryerson are down $0.99 to $33.97.

If you want to see some more M&A transactions, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.