A Federal Bailout for the New York Times?
The incoming Obama administration is already paying back its union allies with a host of pro-labor laws and a stimulus package that, in its spending aspect, benefits only unions, so why not bail out its propaganda mouthpiece, the New York Times?
The venerable publication is hugely in debt, and when its $400-million line of credit runs out in May, it might be the end. Speculation was rife on CNBC last week that the NYT was set to fold in May.
Actually, though I don’t agree with the paper’s politics (tax high, spend high, deport all Republicans, etc.), I admire the New York Times for its high journalistic standards. But is is cash poor.
Catch this dilemma if you think you have it bad:
"The Times Co. has about $46 million in cash and $1.1 billion in debt as of the end of September. It has a $400 million credit facility that expires in May, $250 million in notes due in 2010 and another $400 million credit facility due in 2011."
Reportedly, ownership is currently seeking a cash infusion from Mexican billionaire Carlos Slim (the $60-billion man), who already owns a little over 6 percent of the company.
Here’s the full Wall Street Journal report.