Hedge fund Alden Global Capital is right now the biggest shareholder of Tribune Publishing, the corporate that owns the Chicago Tribune, Baltimore Sun, and New York Daily News.
Alden, a hedge fund recognized for layoffs and slashing prices at newspapers it acquires, purchased the 25% stake from former Tribune Chairman Michael Ferro, Tribune stated Tuesday. Tribune stated Alden paid about $118 million for the stake and that it’s speaking with Alden about including two board seats.
Ferro stepped down as Tribune chairman in 2018 amid sexual misconduct accusations. His time at Tribune was marked by a lot-maligned firm title change to “tronc,” which was later reverted, the sale of the Los Angeles Times, and pushing off an unsolicited merger bid from rival Gannett.
The newspaper trade is consolidating because it struggles with a digital transition, and financial corporations have to turn out to be concerned as owners and traders. One other newspaper chain, GateHouse, now owns Gannett, with an assist from a high-interest loan from personal fairness agency Apollo. One other non-public fairness agency, Fortress, has backed GateHouse and is managing the mixed GateHouse-Gannett chain, the nation’s largest newspaper writer, via 2021.
Alden’s Digital First Media owns the Denver Post, Orange County Register, Detroit News, and dozens of other papers. It attempted to buy Gannett earlier than the GateHouse deal. Whereas all newspaper corporations have been affected by the trade downturn, resulting in newsroom layoffs and buyouts, Digital First Media has a particularly bitter status for cutting prices at its papers.