is it over for the ny times?

Geffen sets sights on NY Times By Matthew Garrahan in Los Angeles and Kenneth Li and,Andrew Edgecliffe-Johnson in New York Published: May 12 2009 03:00 | Last updated: May 12 2009 03:00 David Geffen, the former record executive who made an offer for the Los Angeles Times two years ago, now wants to buy the New York Times, according to people close to the situation. Mr Geffen, a co-founder of... [more]

Geffen sets sights on NY Times By Matthew Garrahan in Los Angeles and Kenneth Li and,Andrew Edgecliffe-Johnson in New York Published: May 12 2009 03:00 | Last updated: May 12 2009 03:00 David Geffen, the former record executive who made an offer for the Los Angeles Times two years ago, now wants to buy the New York Times, according to people close to the situation. Mr Geffen, a co-founder of DreamWorks SKG, made an offer in the past two months for the 19.8 per cent stake in the New York Times Company held by Harbinger Capital Partners, the activist US hedge fund controlled by Philip Falcone. His offer was rebuffed, two people familiar with its details said. One of these said the offer was made at the prevailing market price but Harbinger wanted a premium, adding that Mr Geffen remained interested in owning the company and would be "a patient buyer". Harbinger, Mr Geffen and the Times declined to comment, but Mr Geffen's interest, first reported by Fortune.com, could complicate the future control of America's most prestigious newspaper company. The Ochs-Sulzberger family, which controls the New York Times through a class of shares with super-voting rights, was forced to borrow $250m from Carlos Slim , the Mexican telecommunications billionaire, on terms that could allow him to raise his stake beyond the current 6.9 per cent to become one of its biggest shareholders. Mr Geffen would not mount a hostile challenge to Arthur Sulzberger Jr, the company's chairman, the person familiar with the situation said. Mr Sulzberger told shareholders recently the company was not for sale. There is no clear path to control through the Harbinger stake, given the family's grip on voting rights. However, Mr Geffen's interest comes amid speculation that the family's loyalty may wane as its dividend income has dried up amid the company's cash crunch. Declining advertising revenues have forced the Times to mortgage its Manhattan headquarters, invite offers for its stake in the Boston Red Sox baseball team, and seek deep cost cuts at the Boston Globe to avert the closure of its second-largest title. Mr Geffen is no longer interested in the Los Angeles Times, according to one person familiar with his thinking. The Tribune Company, which owns the Californian newspaper, filed for bankruptcy protection in December. Harbinger, whose stake is worth $193m, also held talks with Google, which declined to comment on "rumours". [less]