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Wednesday, May 2, 2007
Why Does Sheffield Hate Free Markets?
Topic: NewsBusters

A May 2 NewsBusters post by Matthew Sheffield is another tirade against the New York Times Co.'s dual-tier stock structure, in which the Ochs-Sulzburger family has effective control of the company. Sheffield railed against the "second-class status that regular shareholders receive in comparison to a small liberal clique that has almost exclusive control over the money-losing paper" and claimed that such a structure means the Times is "taking money from investors and not giving them anything to show for it."

As we noted the last time Sheffield did this, dual-tier stock structures are hardly unique to the times, and investors who feel that the company has not given them "anything to show" for their investment are free to cash out -- neither of which Sheffield mentions.

Further, contrary to Sheffield's claim that the company is "money-losing," the New York Times Co. made an operating profit of $54.5 million in the first quarter of 2007, and operating profit for the company's News Media Group, which includes newspaper operations, was $59.6 million.

As an employee of an organization that runs a division that used to be called the Free Market Project, Sheffield should know that in a free market, companies are free to structure their companies in the manner they choose, and that investors are free to invest, or not, in those companies. Why is Sheffield so eager to force a structure on the Times Company contrary to one freely chosen and accepted by its investors?

Posted by Terry K. at 7:51 PM EDT

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