New York Times set for investment

http://news.bbc.co.uk/go/rss/-/1/hi/business/7839920.stm

Version 0 of 1.

The New York Times is set to receive a $250m (£180m) investment from Mexican billionaire Carlos Slim to help the paper finance its business.

Faced with having to pay back substantial debts, the loan from the telecoms magnate will give the paper some financial breathing space.

In return, Mr Slim's stake in the paper will be increased, making him the second largest shareholder.

Mr Slim is the world's second richest man, according to Forbes magazine.

The biggest shareholder in the paper is the Ochs-Sulzberger family, which has controlled it for 100 years.

Struggling papers

The paper's chief financial officer James Follo said Mr Slim's interest is purely financial.

The New York Times has a circulation of around a million, making it the third biggest selling newspaper in the US.

American newspapers have been hit by a decline in traditional advertising as the economy has slowed and some people have turned to the internet for their news.

Last month, Tribune Co, which owns the Chicago Tribune and Los Angeles Times, filed for bankruptcy protection as it became unable to pay back $13bn in debt.

Last week, the Minneapolis Star Tribune also filed for bankruptcy protection.