Business

WINNING: Billionaire Mexican Carlos Slim Plans to Cut NYT Stake

Published

7 years ago

December 19, 2017

(Via Bloomberg)

Billionaire Carlos Slim is planning to sell more than half of his 17 percent stake in the New York Times Co. to U.S. hedge fund investors, reducing his sway over one of the world’s most influential publishers.

Slim’s businesses earlier this month sold $250 million of mandatory exchangeable trust securities in a private offering that gives the buyers a claim on a 9 percent stake in the New York Times, according to a person with knowledge of the matter. The newspaper’s shares have surged more than 50 percent since Slim boosted his stake in 2015 and became the biggest shareholder.

The deal, which was referenced in a Dec. 6 statement but has gone largely unnoticed, means that when the securities mature three years from now and they automatically convert into Class A shares of New York Times, Slim and his companies will be left with about 8 percent of the publisher’s shares, said the person, who asked not to be identified because the information is private. In essence, the billionaire created a trust, pledged New York Times shares to it, locked the shares up for three years, then sold rights to that stock to investors.

Slim built his stake in the New York Times after lending the company $250 million in 2009 to help it get through the financial crisis. In 2015, he exercised stock options to become the Times’s biggest single investor in a display of confidence in the company even as readers and marketers flocked to the Internet where content is often free and ad rates are cheaper.

With the smaller stake, he’ll lose some of the power he had to vote for Class A directors, a group that can include no more than a third of board members. The Ochs-Sulzberger family — the paper’s controlling owners — hold Class B shares that give them a firm grip on the company. Publisher Arthur O. Sulzberger Jr. will retire at the end of this year after a quarter-century of overseeing the newspaper. His 37-year-old son, A.G., will take over.

Transferring the shares through the hybrid instruments allows Slim to take advantage of deferred tax payments until the transaction is completed, the person said.

Arturo Elias Ayub, a spokesman for Slim, confirmed the transaction. A New York Times spokesperson said the paper is “grateful for Mr. Slim’s confidence and support of the company” after he became a shareholder at a “critical” time in its history.

Technical investors such as hedge funds bought most of the securities Slim offered, perhaps seeking to take advantage of the arbitrage opportunity opened up by the deal, the person said.

In July, Slim’s family holding company Inversora Carso sold 521,500 Times shares — a fraction of its ownership and an amount representing 0.3 percent of the company, according to an SEC filing and data compiled by Bloomberg. Slim had said at the beginning of this year that the U.S. daily had been a good investment and that he wasn’t planning to sell his stake.

When Slim made his loan to the Times, the publisher was reeling from the global financial crisis and needed a cash infusion to buy time for asset sales and new strategic initiatives. The company agreed to pay 14 percent interest and granted Slim stock warrants to acquire his stake at a discount. The terms seemed onerous at the time but that ultimately let the Times dig itself out of a bad situation. The company paid back the loan in 2011, ahead of schedule.

Slim exercised the warrants in 2015 and has held on to most of the shares, benefiting from a 51 percent rally as the election of President Donald Trump drove demand for digital subscriptions from news-hungry readers.

Shares closed Monday at $18.60, still far off their high of more than $52 in 2002, back in the early days of the internet. Slim has said his bet on the Times was always about the value of the newspaper’s brand, which he figured would survive the upheaval of the digital age.

Before he was elected, Trump accused Slim of using his ownership stake in the Times to influence the paper’s coverage of him. The Times said Slim never affected coverage and a representative for the billionaire said Slim wasn’t interested in influencing the election.

— With assistance by Gerry Smith, Andrea Navarro, Crayton Harrison, and Nacha Cattan

Business

MAGA: From Shopping Mall to Manufacturing Hub 2.0

Published

9 months ago

March 15, 2024

Pepe Jones

Title: America’s Transition: From Shopping Mall to Manufacturing Hub 2.0

In the past few decades, America has often been described metaphorically as a giant shopping mall or auction house, where consumption and commercialism have dominated the landscape. However, with the rise of the Trump administration and the ambition to “Make America Great Again,” a new vision is emerging—one that aims to transform the nation into the world’s greatest manufacturing hub ever seen, leveraging AI, blue-collar labor, and a combination of innovative technologies.

The shift from a consumer-driven economy to a production powerhouse signifies a strategic move towards self-sufficiency, economic resilience, and global competitiveness. This transformation is not merely about revitalizing industries of the past but embracing cutting-edge technologies and sustainable practices to redefine the future of manufacturing.

At the heart of this evolution lies the integration of artificial intelligence (AI) into manufacturing processes. AI-driven automation streamlines production, enhances efficiency, and reduces costs, enabling American manufacturers to compete on a global scale. By harnessing the power of machine learning and predictive analytics, businesses can optimize supply chains, minimize waste, and customize products to meet diverse consumer demands.

However, the vision for America’s manufacturing renaissance extends beyond technological innovation. It embraces a diverse workforce, blending the traditional blue-collar skillset with the expertise of engineers, data scientists, and software developers. This fusion of talent creates a dynamic ecosystem where creativity, problem-solving, and collaboration drive continuous improvement and sustainable growth.

Moreover, the resurgence of American manufacturing is not confined to a single sector but encompasses a broad spectrum of industries, from automotive and aerospace to electronics and renewable energy. By leveraging cross-disciplinary expertise and fostering strategic partnerships, the United States can position itself as a global leader in advanced manufacturing, setting new standards for quality, innovation, and sustainability.

One of the key strengths of this manufacturing transformation is its adaptability and resilience. In contrast to the volatility of global markets and supply chains, a robust domestic manufacturing base provides stability and security, mitigating risks associated with geopolitical tensions, trade disputes, and natural disasters. By decentralizing production and embracing local sourcing, America can reduce its dependence on foreign imports and safeguard its economic sovereignty.

Furthermore, the transition towards a manufacturing-centric economy aligns with broader societal goals, such as job creation, workforce development, and regional revitalization. By investing in vocational training programs, apprenticeships, and re-skilling initiatives, the United States can empower individuals from diverse backgrounds to thrive in the digital age and secure meaningful employment opportunities in the manufacturing sector.

As America embarks on this journey towards manufacturing excellence, it must also prioritize sustainability and environmental stewardship. By embracing eco-friendly practices, renewable energy sources, and circular economy principles, manufacturers can minimize their carbon footprint, reduce waste generation, and preserve natural resources for future generations.

In essence, the vision of America as the world’s greatest manufacturing hub represents a paradigm shift—one that transcends partisan politics and embraces a collective aspiration for progress, prosperity, and shared prosperity. By harnessing the transformative power of AI, blue-collar ingenuity, and interdisciplinary collaboration, the United States can reclaim its status as an industrial powerhouse and pioneer a new era of manufacturing innovation on the global stage.

As the nation embarks on this ambitious journey, it must remain steadfast in its commitment to inclusivity, sustainability, and technological leadership, ensuring that the benefits of the manufacturing renaissance are felt by all Americans and resonate across borders, shaping a brighter and more prosperous future for generations to come.

Business

Outrage As Robinhood CEO Confesses To Elon Musk: DTCC Shut Down Stocks In Gamestop; AMC Surge

Published

4 years ago

February 2, 2021

Populist Wire Editorial Board

Did Congressional authority allow DTCC to help defraud middle-class investors buying Gamestop and AMC?

The CEO of Robinhood admitted to Elon Musk that the DTCC – The Depository Trust & Clearing Corporation – halted trading during a call Monday morning on the Clubhouse app.

Proof: https://youtu.be/K2CEImKce6s

This is not the first time this has happened…

2008 case: https://casetext.com/case/pet-quarters-v-depository-trust-clearing

Sound familiar?

This appears to be Pet Quarters having the same issue Robinhood has today. When Pet Quarters took it to court, the courts said something along the lines of: f*** you, don’t ever come back here (citing technicalities).

Why did they win? Well, DTCC is given the authority by Congress to regulate despite technically being a private organization

There’s more – “To date, except for one case where DTCC’s dismissal motion is pending, all of the cases either have been dismissed by the courts or withdrawn by the plaintiffs.”

Proof: https://boards.fool.com/federal-court-dismisses-lawsuit-against-dtcc-24179123.aspx

Every AG in the country should be made aware of these facts and open investigations into the matter.

Why does Congress get to deputise a private organization as eco-hitmen for the market?

UPDATE (2/3/20 5:09 AM):

(Reuters) – Robinhood Chief Executive Vlad Tenev is expected to testify before a U.S. House committee on Feb. 18, Politico reported on Monday, citing people familiar with the matter.

The hearing before the House Financial Services Committee has not been formally announced, the report added

Culture

#AdiosAmerica: Republicans (with Democrats) Are Selling Out America to Corporations to Decrease Living Standards

Published

5 years ago

July 14, 2019

Populist Wire Editorial Board

Since the turn of the 20th century, living standards became an important, almost central part to the progressive and labor movements of those times. Now it has become a mainstream of both parties to sell out your labor to lowest bidders in low and high paying jobs. Low paying jobs are being taken by low-wage immigrants protected by Democrats and the high-end jobs are brought in by bi-partisan means, and greatly boasted by Republicans.

This effort has crippled the middle-class for close to 30 years now and with the job market being already tightened by the looming threat of A.I., importing more workers, whether legal or illegal is decreasing the value of labor in America for each and American Citizen. Corporations and Businesses, who rely on keeping employee costs as low as possible generally don’t complain about these practices across the board, why would they?

Americans have an increasingly difficult task ahead of them with the mass illegal migration at the Southern Border but also the legal importation of immigrants through H1-b1 Visas. These challenges will increasingly change the look, heritage of this country. There is no incentive for either Government or Business to care about reigning in immigration to the benefit of the American worker, the bottom dollar line will look better anyways.