Activist hedge fund Harbinger Capital disclosed in an SEC filing yesterday that it has sold 2.5 million shares of The New York Times Co. (NYT), reducing the company's largest outside shareholder's stake from to 14.6%. It also sold shares in September, when it reduced its position in the company from a 20% stake.

Harbinger declined a request for comment from The Wall Street Journal (subscription required), but it's possible that Harbinger is finally realizing that the shares' dual-class voting structure will make it impossible to affect change on the company's operations or corporate governance -- and as long as the Sulzberger family controls the company's fate, it will continue to be a value destruction machine trading at approximately the same share price it was at in 1984.

Continue reading Is Harbinger giving up on The New York Times Co.?

Is Harbinger giving up on The New York Times Co.? originally appeared on BloggingStocks on Fri, 20 Nov 2009 15:00:00 EST. Please see our terms for use of feeds.

The battered Boston Globe isn't worth 90% of what the NY Times Co. (NYSE: NYT) paid for it, but it seems to have bounced a bit from the bottom of the barrel. In a meeting with a few hundred of the newspaper's employees, company chairman Arthur Sulzberger Jr. and CEO Janet Robinson revealed that the Globe's finances have improved significantly. Because of this development, they continued, there is a chance the newspaper will not be sold.

This was the first meeting between company executives and the Globe's unions since the latter accepted pay cuts back in July. The newspaper, which has a 137-year history, lost $50 million in 2008 and looked like it was going to drop another $85 million this year. Though this no longer appears likely, the Globe is still in rough shape.

Continue reading Boston Globe may be off the block

Boston Globe may be off the block originally appeared on BloggingStocks on Thu, 10 Sep 2009 11:50:00 EST. Please see our terms for use of feeds.

Continue reading New York Times Deathwatch: Will the Gray Lady make it through the year?

New York Times Deathwatch: Will the Gray Lady make it through the year? originally appeared on BloggingStocks on Fri, 20 Feb 2009 10:00:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports (subscription required) on speculation that Mexican billionaire Carlos Slim may provide The New York Times Co. (NYSE: NYT) with some much-needed cash.

Mr. Slim disclosed a 6.4% stake in the company back in September, but the stock has taken a beating since then. The company is looking desperately to raise cash with a sale and lease-back of part of its headquarters and "various other financing alternatives," including "private placements."

But the Journal notes that "The big question is whether Mr. Slim would demand some degree of control for an infusion. The next question then would be the response of the fractious Sulzberger family."

Here's my take on it: Slim would have to be absolutely mental to toss another hundred million dollars or more into a company with a history of terrible shareholder returns without demanding that the Sulzberger family give up their total control of the company's destiny.

A New York Times Co. controlled freely by its shareholders would be good news for the company and its investors. The Sulzberger family has never demonstrated a willingness to let outsiders have a say in the company's future, but at this point they may not have much of a choice. The question is whether it's too late for new leadership to make a difference.

Will Carlos Slim save The New York Times? originally appeared on BloggingStocks on Sat, 17 Jan 2009 11:40:00 EST. Please see our terms for use of feeds.

The New York Times (NYSE: NYT) reported that its October revenue got beat up again. If anything, it was worse than some previous months this year, but it's papers are caught in the vortex of a failing industry. For the month, advertising revenue was down 16.2%. Internet revenue only rose in the single digits, so online sales are not going to save the company.

In an odd way, the drop in revenue was the relative good news because the company also cut its dividend by a very large amount. The payout was cut by 74% to $0.06 per share. To make matters worse, the stock sold off 10% to a 52-week low of $5.72.

NYT has debt that is due next year. Its papers in New England, led by the Boston Globe, are losing as much as 20% of their ad revenue each month.

The company is controlled by the Sulzberger family, which has been in charge for over a century. One of the reasons the brothers and sisters, aunt and cousins have supported management was for the rich payout they received each quarter. Now, that is going away.

With an unhappy family, the company may be in play. Perhaps Rupert Murdock might buy it. NYT would make a nice bookend for The Wall Street Journal.

Douglas A. McIntyre is an editor at 247wallst.com.

Big trouble at The New York Times Company (NYT) originally appeared on BloggingStocks on Fri, 21 Nov 2008 10:02:00 EST. Please see our terms for use of feeds.