Tribune agrees to purchase by hedge fund for $630 million
Newspaper publisher Tribune has agreed to be sold to Alden Global Capital, a hedge fund known for cutting costs and eliminating newsroom jobs, in a deal valued at $630 million
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.The newspaper publisher Tribune has agreed to be sold to Alden Global Capital, a hedge fund known for cutting costs and eliminating newsroom jobs, in a deal valued at $630 million.
Tribune Publishing Co., which owns the Chicago Tribune the New York Daily News, the Baltimore Sun and other newspapers, said Tuesday it has agreed to sell its shares to Alden for $17.25 apiece, in cash.
Alden became Tribune Publishing’s largest shareholder in 2019; it holds a 32% stake. The hedge fund owns one of the country’s largest newspaper chains; its papers include the Boston Herald, the Denver Post and the San Jose Mercury News.
The Baltimore Sun is not included in the deal. It will be sold to a nonprofit formed by businessman and philanthropist Stewart Bainum Jr. that will run the paper "for the benefit of the community," the Sun wrote on Tuesday.
The success of the Tribune deal hinges on securing the votes of biotech billionaire and Los Angeles Times owner Patrick Soon-Shiong, who owns about 24% of Tribune Publishing, and shareholder Mason Slaine, a former media executive who owns about 8%, according to the Chicago Tribune. Slaine and a representative for Soon-Shiong did not immediately respond to requests for comment on Tuesday.
Tribune said the purchase price represents a premium of 45% to the closing price of Tribune's shares on Dec. 11, the last trading day before the company received Alden’s proposal. Tribune's board has approved the deal, which is expected to close in the second quarter.
Tribune journalists have spoken up about their fears of Alden’s influence and control over their papers. Alden is known for slashing costs and shrinking newsrooms at the newspapers it acquires to squeeze out profits. It is behind the MediaNews Group, which owns the Boston Herald, the Denver Post and dozens of other papers.
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. Newsroom jobs fell by nearly half from 2004 to 2018, according to Pew Research. The pandemic has exacerbated those stresses. Tribune’s chief financial officer said in November that the company has been “aggressively” cutting costs during the pandemic, including furloughs, pay cuts and closing its newsrooms.
In a statement, Alden said that "
___
This story has been corrected to note the sale price is $630 million, not $630 billion
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.