UPDATE 1-Geffen offered to buy NY Times stake-source

* Geffen offered to buy Harbinger's NY Times stake-source

* Geffen bid market price, Harbinger wanted premium-source

* Geffen, Harbinger not in talks now-source

* Google looked at New York Times but passed-Fortune.com (Adds value of stake, background)

By Sue Zeidler

LOS ANGELES, May 11 (Reuters) - Media mogul David Geffen offered to buy a 19 percent stake in the New York Times Co (NYT.N) held by hedge fund Harbinger Capital Partners but was rejected, a source with knowledge of the matter said on Monday.

Geffen offered to buy the stake at market price. Harbinger fund manager Philip Falcone wanted a premium, according to the source. The two sides are not currently in talks, said the source, who spoke on condition of anonymity.

Harbinger owned 19.94 percent of the Times Co as of March 6, or 28.5 million shares. At Monday's closing price of $6.81, the stake would be valued at about $194 million, far less than the $500 million that Harbinger paid.

Interest in Harbinger's stake in the Times Company has grown as the investment fund reels from losses in its funds. Times shares have fallen along with other newspaper stocks, hurt by the slump in advertising spending and by circulation declines as readers turn to the Internet for free news and information.