Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Hedge fund Alden offers to buy Tribune, valuing it at $521M

Hedge fund Alden, Tribune’s largest shareholder, has offered to buy the rest of the newspaper publisher at a price that values it at $520.6 million

Via AP news wire
Thursday 31 December 2020 15:46 GMT
Tribune Alden
Tribune Alden (Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistribu)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Hedge fund Alden, Tribune's largest shareholder has offered to buy the rest of the newspaper publisher at a price that values it at $520.6 million.

Alden sent a letter to Tribune on Dec. 14, according to a regulatory filing posted Thursday, offering $14.25 per share for the stock of Tribune it doesn't already own. Alden owns 31.6% of Tribune shares. The hedge fund said it had not received “any feedback” to its letter, which it described as a “preliminary inquiry."

Tribune did not immediately respond to a request for comment Thursday.

Alden bought its stake in Tribune in November 2019 and has three seats on its seven-member board. Tribune publishes nine major daily papers, including the New York Daily News, Chicago Tribune and Baltimore Sun. Alden controls a major U.S. publisher whose papers include the Denver Post, Orange County Register and Boston Herald. It has a reputation for layoffs and intense cost-cutting even beyond the newspaper industry's overall turn in that direction. The unions at Tribune papers have pushed for alternative buyers for the company's papers.

The newspaper industry has been consolidating as it struggles with a digital transition and shrinking revenues. Tribune has been cutting costs during the pandemic, including furloughs, pay cuts and closing its newsrooms.

In July Alden extended an agreement with Tribune not to increase its stake above one-third until June 2021 in exchange for one more board seat on Tribune's board. In the filing Thursday, Alden said a deal for all of Tribune would be conditioned upon approval by a special committee of independent directors and approval from owners of two-thirds of Tribune shares not affiliated with Alden.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in