Hedge fund Alden Global buys newspaper chain Tribune Publishing

by

The acquisition was long anticipated and feared internally after the hedge fund became the company’s largest shareholder with approximately 32% ownership in 2019. Hundreds of Tribune employees signed a letter to protest the property, citing the hedge fund’s “well-documented history of making short-term profits from already lean operations by cutting newsroom jobs and denying fair wages and benefits.” Shortly after Alden took over, Tribune offered buyouts to employees for the second time in two years.

Some Tribune-owned newsroom staff looked for alternative options for hedge fund ownership. Hartford Courant executives sought non-profit property through the “Save Our Courant” campaign. So is the association of The Baltimore Sun, with the “Save Our Sun” campaign.

In Tuesday’s press release, Alden announced that he had agreed to sell the Baltimore Sun Media Group to Sunlight for All Institute, a nonprofit led by Stewart Bainum Jr., chairman of Choice Hotels International hotel chain. The media group includes The Baltimore Sun, the Capital Gazette in Annapolis, The Carroll County Times, and other local outlets.

Alden and Tribune said in a joint release on Tuesday that Tribune’s board of directors approved the deal after a special committee reviewed the options – including Alden’s proposal. The deal is expected to close in the second quarter of this year and will require approval from two-thirds of non-Alden shareholders.

The announcement has already received criticism from some of Tribune’s own employees.

“Absolutely terrible news,” tweeted Gregory Pratt, a town hall reporter at The Tribune.

Pamela Wood of Baltimore Sun said the acquisition is from Alden “really awful.”
Other media observers, such as Margaret Sullivan, celebrated the sale of Baltimore Sun to a nonprofit, calling it “the one bright spot in Alden / Tribune’s development.”
Tribune Publishing also owns Sun Sentinel and Orlando Sentinel, Virginia’s Daily Press and The Virginian Pilot, and The Morning Call of Lehigh Valley, Pennsylvania. The company closed several newsrooms during the pandemic, including The Daily News, The Morning Call, and The Orlando Sentinel.

“Over the past year, the company has taken a number of steps to adapt to an ever-changing business and industrial environment, including the impact of COVID-19,” said Philip Franklin, chairman of the board and member of the special committee, said in a statement. “These actions include strengthening the company’s financial position, driving digital growth, and investing in high-quality content to better serve customers, employees and communities. This positioning allowed the special committee to negotiate a premium, all-cash price, which the committee concluded: superior to the available alternatives. “

Tribune spokesman Max Reinsdorf declined to comment on CNN Business after its release.

Source