A hedge fund that owns a large stake in Tribune Publishing Co.
According to people familiar with the case, Chicago is trying to buy the newspaper series behind the headlines, including the Tribune and the New York Daily News.
Alden Global Capital LLC, already the Tribune’s largest shareholder with a 32% stake, could disclose an offer for the company as soon as Thursday, people said. The details of the possible dialect cannot be learned.
The Tribune has a market value of about $ 470 million after a long slide as local newspapers dull prospects. Its shares have changed slightly this year and closed at $ 12.79 on Wednesday.
The sharp decline in revenue over the last 20 years will have far-reaching effects for an industry, which has led to a wave of consolidation and cost reductions. Between 2008 and 2019, according to the Pew Research Center, the industry shed 51% of its newsroom jobs.
Tribune Publishing, one of the nation’s largest newspapers by circulation, publishes nine large market dailies, including the Baltimore Sun, Orlando Sentinel and Hartford Court.
Alden controls MediaNews Group, a private company that owns about 60 dailies nationwide, including the Denver Post, San Jose Mercury News and the Orange County Register. Hedge funds have a reputation for cutting deep costs on the titles they receive.
In July, Alden consolidated a strong position in the Tribune board, taking control of a third of seven seats in exchange for an agreement to expand a standstill agreement that would allow the hedge fund to increase its stake or make hostile bids by June 2021 Prevents from. .
As a result, any deal to increase the stake would require a signature from a significant portion of shareholders unaffected by the Tribune or Alden. The company’s second-largest shareholder, with about 25%, is Patrick Sun-shiong, a billionaire biotech investor who bought the Los Angeles Times in 2018 from The Tribune for $ 500 million.
With the industry recovering from the economic impact stemming from the coronovirus epidemic, the Tribune has closed dozens of journalists and closed many of its newsrooms entirely to protect it from real-estate costs. Earlier in December, the Tribune agreed to sell its e-commerce business, Best Review, to Nexstar Media Group Inc.
For $ 160 million.
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Featured on December 31, 2020, ‘Edition to Funds to Fully by Tribune Chain’.