NY Times Shouldn’t Take Its Chances With Slim

Over the weekend, the Wall Street Journal reported that the New York Times was in talks with the world’s second richest man, Carlos Slim, about investing to help ease their financial problems.

There are much better choices for the Times than to cozy up even closer to the Mexican billionaire. Slim bought a stake in the New York Times Company back in September, and he’s already the company’s largest shareholder not related to the owning Sulzberger family.

The Journal points out that an additional investment by Slim would also cost them an additional dividend for a preferred sales plan, but the Times might find it tough to get a loan of that size in the current environment.

In such dire straits, the Times would be better off following the advice of venture capitalist John Thornton, who suggests they become a nonprofit organization running as a public trust. It’s probably not what Mr. Slim has in mind.