Why The New York Times Refused Geffen’s Investment

Posted May 30, 2009

The New York Times needed an infusion of cash recently as their stock price has not been doing so great.  Harbinger Capital, a company that owns about 19% of NYT stock wanted to unload it to Hollywood exec David Geffen and Google.

Last winter the New York Times decided to get more money out of Mexican telecom billionaire Carlos Slim instead of David Geffen, $250 million to be exact.  They did this for a reason.  Geffen even offered the same terms for the loan.

The New York Times Chairman told Geffen that the company would rather work with Slim because he already owns a major amount of shares in the company and that ?he was reportedly also worried about Geffen?s ambition to take over the company.?  Geffen made an offer to completely buy out The New York Times this past September.

Arthur Sulzberger Jr. and his family are the major shareholders in The New York Times.  His family has controlled the newspaper since 1896 and the company was founded in 1851.  Their family said that they were not interested in selling the company outright, but this is the same sentiments that the Bancroft family had with The Wall Street Journal and the Dow Jones.  Both Dow and The WSJ are now owned by News Corp.

[via AllThingsD]