Google, Dreamwork’s Owner, Geffin Vies to Buy NY Times

May 12, 2009

(ChattahBox)—Philip Falcone, founder of Harbinger Capital Partners, owns a 19.8 percent stake in the New York Times Company and he is putting it on the selling block. David Geffen, former record executive and co-founder of DreamWorks SKG made an offer at the current market price that has so far, been rejected by Falcone. Google, the giant search engine company is also in the mix, said to be in talks with Falcone.

Geffen made a bid for a stake in the Los Angeles Times two years ago, which was also rebuffed. The Tribune Company owned paper is now in a Bankruptcy restructuring. Geffen has given up on owning the LA times and now has his sights set on the NY Times.

Although Falcone, rejected his bid, Geffen may submit another bid soon or just wait Falcone out as market prices drop further. Geffen is said to be extremely interested in getting his hands on the NY Times’ stake and will sit tight and remain patient.

With Google now reported to be in the mix, the future makeup of the ownership of the NY Times could become interesting.

The NY Times, like many newspapers in this economy, are suffering huge losses. Its advertising revenue has dropped so low the paper was forced to mortgage its NY headquarters, force its other paper, The Boston Globe, to make drastic cuts totaling $20 million and is dangling its stake in the Boston Red Sox to the highest bidder.

The NY Times recently borrowed a big chunk of cash totalling $250 million from Mexican billionaire Carlos Slim, awarding him a 6.9 percent, which could increase making him one of the largest shareholders.

Whoever ends up owning the shares now owned by Falcone and his hedge fund, will have to battle with the Ochs-Sulzberger family who owns a controlling group of shares with super-voting rights.

Source


Comments

Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.