The New York Times Company announced last night that it had cut a deal with Mexico's Carlos Slim, the world's second-richest man, for a $250 million loan. Slim will receive common shares over six years, at the end of which he will own 17% of the corporation. But he will not gain any representation on the company's board or any of the special voting shares held by the Sulzberger family.
The agreement comes as the company, which owns the Times and the Boston Globe among other properties, struggles with declining advertising revenue and faces a deadline to pay back $1.1 billion in debt. In recent months the company has tried to sell its stake in the Boston Red Sox, and it will borrow up to $225 million against its new office building on New York's 8th Avenue. Slim, who approached the Times in November, will also receive 14% interest on the loan.