Paul Pioneer Press.Īlden acquired its stake in Tribune Publishing in November 2019, mostly through buying former nonexecutive chairman Michael Ferro’s holdings. Its larger newspapers include the Denver Post, San Jose Mercury News and the St. Launched in 2007, Alden owns about 200 publications through an operating company known as MediaNews Group. During that same time, newsroom employment declined 25%. Revenue has been cut in half between 20 because of a precipitous decline in print advertising, according to data from Pew Research. The deal comes as the newspaper industry continues to struggle in a digital media age. In December, Slaine, the former CEO of business information publisher Thomson Financial, told the Tribune he thought Alden’s $14.25 per share offer seemed too low. The Los Angeles Times has been grappling with its own issues since Soon-Shiong’s acquisition, including sharp revenue declines during the COVID-19 pandemic and the December resignation of executive editor Norman Pearlstine amid allegations of ethical lapses and inequity in the newsroom. In 2018, Soon-Shiong bought the Los Angeles Times and San Diego Union-Tribune for $500 million from Tribune Publishing, then briefly called Tronc. Soon-Shiong, who built his initial stake in Tribune Publishing at $15 per share in 2016, owns about 8.7 million shares of the company. Soon-Shiong has not spoken publicly about Alden’s interest in buying the rest of the company or his intentions. The deal’s success hinges on securing the votes of California 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 roughly 8%. Three of the seven board seats are held by Alden representatives. It already has been approved by Tribune’s board. The deal, which the companies said should close in the second quarter, requires the approval of two-thirds of shareholders not affiliated with Alden and must pass regulatory scrutiny. On Tuesday, shares closed at $15.97 a share, giving the company a market capitalization of $583.4 million. Since its interest in buying all of the company was made public in late December, shares of Tribune Publishing have steadily moved higher. The agreed-upon price is $3 a share higher than a nonbinding proposal Alden presented in December. That amounts to Alden paying about $431 million for the 68% of the shares it doesn’t already own. It follows weeks of negotiations between a special committee of Tribune Publishing’s board and Alden, a hedge fund with a history of deep cost-cutting at its other newspaper properties.Īlden, already Tribune Publishing’s largest shareholder with a 31.6% stake, is offering $17.25 a share for the remainder of the company in a transaction that would take Tribune Publishing private. Tribune Publishing, publisher of the South Florida Sun Sentinel and other major newspapers, has agreed to be acquired by Alden Global Capital in a deal valued at $630 million.Īnnounced Tuesday after the stock market closed, the deal would create one of the largest newspaper operators in the United States.
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