• by Erik Sass , April 2, 2010

Harbinger Capital Partners is continuing to sell off its stake in the New York Times Co., reinforcing the impression that its once-incendiary partnership with Firebrand Partners, which sought to reform the NYTCO's top management, is now thoroughly squelched.

This is the latest in a series of retreats by the hedge-fund investors, who have sold NYTCO stock on a number of occasions over the last year.

In the most recent round, Harbinger sold another 1.5 million of its NYTCO Class A shares on March 26, at a price of $11.20 per share. This sale reduces Harbinger's total stake in NYTCO to 11.68% -- down to almost half of its peak of 19.94% two years ago.

The first round of selloffs came in September 2009, when Harbinger sold 5,000,000 shares -- taking advantage of a bump in NYTCO's stock price, which rose from just under $7.20 in early September to $8.25 on the day of the sale. However, the price was far lower than what Harbinger paid when it acquired its stake in 2007, at prices ranging from roughly $15 to $20.

Plus, that sale reduced Harbinger's stake in NYTCO to 23,538,434 shares, or 16.38% -- down from 19.94%. Another round of sales in November lowered its stake to 14.6%.

Harbinger and its ally, Firebrand Partners, joined forces to quickly accumulate a large stake in NYTCO, rising from 4.9% in January 2008 to 19.94% the following month, aiming to accomplish what other "Class A" shareholders failed to do -- exercise real authority over NYTCO's management.

The NYTCO's two-tiered share structure gives the majority of seats on the board to owners of special "Class B" shares, including members of the Sulzberger family. In March 2008, Harbinger and its ally, Firebrand Partners, forced NYTCO to add an extra director to the board in March 2008, elected by "Class A" shares.

Still, the Sulzbergers maintained control of the majority of the board, with 10 seats to regular shareholders' five. Then in February of this year, Firebrand boss Scott Galloway left the NYTCO board, which has returned to its previous size.