Shares in the Times Company jumped more than 4 percent to a five-year high on Monday, shortly after the businessman, Chen Guangbiao, hinted at his plans in a speech in southern China.
Arthur Sulzberger Jr., publisher of The New York Times, said in 2013 that the family that controls the paper is not interested in selling it.
In a phone interview on Tuesday, Mr. Chen said he had been thinking about “working with” The New York Times for years. Recently, he said, he had persuaded two businessmen, including a Hong Kong tycoon, to help him raise about $1 billion to snap up a large portion of the company, now valued at about $2.4 billion based on its stock price.
Because of the way its shares are structured, the company is controlled largely by a special class of stock, Class B shares, held by descendants of Adolph S. Ochs, who acquired the paper in 1896. The Class A stock, which is publicly traded, rose about 86 percent in 2013.
Mr. Chen, who made a fortune in the recycling business, said he had set up a meeting with Times representatives next week in New York and planned to make his pitch because The New York Times was the world’s most influential publication. Eileen Murphy, a spokeswoman for The Times, said, “We have no information about any such meeting.”
In the telephone interview, Mr. Chen said, “If I can get this deal with The New York Times, I will be able to bring more positive images and influence to contribute to world peace and make the world a better place.” He added, “If the deal breaks off, I will keep searching for another credible and influential media company in the U.S. to achieve my goal.”
Mr. Chen, who is estimated to be worth about $800 million, according to the Hurun Rich List, has been praised and ridiculed for his publicity stunts, which have included handing out cash and “canned fresh air” to raise awareness about charitable giving and the environment.
Although The Times has a news bureau in China, the paper’s English- and Chinese-language websites have both been blocked here since late 2012, after The Times published an article about the hidden wealth of the relatives of Wen Jiabao, then Chinese prime minister.
Mr. Chen said he would work to repair The Times’s image in China, and to improve the paper’s understanding of the country.
“My plan for The New York Times if I get the deal will be putting the paper on every newsstand across the country and making The Times accessible to every Chinese household. China is such a big market and is too big to miss,” he said.
The New York Times’s strong recent stock performance follows several quarters of positive earnings results and gains in circulation, though it still faces a struggling advertising market. The company’s stock closed on Tuesday at $15.87, down 22 cents.
In 2014, it plans several initiatives, including a website redesign, new digital products and the use of native advertising, which is paid content from marketers that is designed to look more like the online articles it appears alongside than traditional advertising.
Ravi Somaiya contributed reporting from New York and Stephanie Yifan Yang contributed research from China.
Article source: http://www.nytimes.com/2014/01/01/business/media/chinese-businessman-announces-bid-to-buy-stake-in-times-co.html?partner=rss&emc=rss
Speak Your Mind
You must be logged in to post a comment.