According to Media Memo, The New York Times has taken out a $250 million dollar loan at a 14% (!) annual interest rate from Mexican billionaire Carlos Slim. They are also sitting on $46 million dollars in cash to cover $1.1 billion in debt.
Doesn't this sound like taking out a home equity loan in order to pay the mortgage? We have all seen how well that worked in the current mortgage collapse.
The Times needs revenue increases, and fast. This in an industry that could barely grow during the dot com boom. Job cuts won't do it. The Times needs income.
Start charging what it costs to produce the daily publication? I wonder what the price of a single paper would be if that were the case. Something is going to change. Whether it is proactive or reactive. It's gonna happen soon.