Skip to comments.BILL GATES 'CHARITY' FOUNDATION FINANCES NEWSPAPER PURCHASES
Posted on 08/20/2006 4:39:01 PM PDT by Cedar
BILL GATES 'CHARITY' FOUNDATION FINANCES NEWSPAPER PURCHASES
The BILL & MELINDA GATES FOUNDATION declares its noble mission is to bring "innovations in health and learning to the global community."
But the world's largest philanthropic organization also is among the organizations that collectively loaned nearly $400 million to MEDIANEWS GROUP INC. -- for the acquisition of newspapers in California and Minnesota!
"I thought this foundation was all about starving kids, not starving newspapers," mocked one Seattle insider.
The GATES FOUNDATION loaned an unspecified amount to MEDIANEWS, along with GENERAL ELECTRIC.
In April, MEDIANEWS agreed to buy four newspapers, including the SAN JOSE MERCURY NEWS and CONTRA COSTA TIMES, from MCCLATCHY CO. for $1 billion. MEDIANEWS also bought California's MONTEREY COUNTY HERALD and the ST. PAUL PIONEER PRESS in Minnesota. It also own the DENVER POST.
The move into funding media acquisitions was unusual for the BILL & MELINDA GATES FOUNDATION, whose donations usually go to health and anti-poverty purposes.
In June, financier Warren Buffett announced he would donate an estimated $31 billion to the GATES FOUNDATION, bringing its total endowment to more than $60 billion -- which could easily save every newspaper in America!
But how much money will be needed to stop the hemorrhaging of readership? Better they throw money down this rat hole than something like Planned Parenthood.
Old Charitable Bill, looking for some favorable M$ news coverage in Silicon Valley.
"Warren Buffett announced he would donate an estimated $31 billion to the GATES FOUNDATION...
No wonder there are so few conservative newspapers."
He has to buy the print and video media to pimp the new operating system "Vista". Cannot do it without friendly media, users are too savvy to buy it without scrutiny. Has to own the media to get friendly writeups and reports.
Interesting. Have they been using the nonprofit tax code for their commercial activities?
Sorry for my HTML error.
You all might be interested in this.
Non profit foundations are usually required to dispense 5% of net worth (endowment) per year. Its hard to spend Buffets $31 billion + Gates zillions in one year. The rest has to go someplace. Prudent investments of the endowment are in order; in fact, fiduciarally required.
I'm sure the loan carries a proper return on principle.
I smell a "charitable" Airhead America "bailout" in our future.
I'm lost here....
Given the credit rating of the borrower, I'm thinking that this loan was simply an investment, much like stocks, mutual funds, and that mother of all loans, BONDS.
Yes, that's right... a BOND is simply a loan.
While probably relatively few people were previously aware of this story it is not 'Breaking News'.
A quick google search shows that the Contra Costa Times published it on 8/11/06
"Gates, GE in on MediaNews deal
The financing package that MediaNews Group Inc. obtained to help in its purchase of the Times, San Jose Mercury News, and other papers includes perhaps the best-known name in Corporate America: Microsoft Corp. founder Bill Gates.
MediaNews obtained a financing package from a syndicate of lenders that enables the newspaper company to borrow up to $597 million to help finance its acquisitions, according to a MediaNews filing with the Securities and Exchange Commission. The syndicate of lenders includes the Bill and Melinda Gates Foundation, General Electric Capital Corp. and several financial and other organizations."
If this foundation claims tax benefits due to charitable goals, then eligibility should be REVOKED.
Making the move to Linux now.