A hedge fund that owns a large stake in Tribune Publishing Co.
TPCO 0.31%
is looking to buy the newspaper chain behind headlines like the Chicago Tribune and the New York Daily News, according to people who know the subject.
Alden Global Capital LLC, which is already the largest shareholder in Tribune with a 32% stake, could reveal an offer for the company as early as Thursday, according to people. The details of the potential offer could not be known.
Tribune has a market value of approximately $ 470 million after a long period of years, as the prospects for local newspapers diminish. Its shares have changed little this year and closed Wednesday at $ 12.79.
An agreement would have far-reaching implications for an industry plagued by sharp falls in revenue over the past 20 years that have led to a wave of consolidation and cost cuts. Between 2008 and 2019, the industry lost 51 percent of its writing jobs, according to the Pew Research Center.
Tribune Publishing, one of the country’s largest newspaper chains by broadcast, publishes nine major market newspapers, including the Baltimore Sun, Orlando Sentinel and Hartford Courant.
Alden controls MediaNews Group, a privately held company that owns about 60 daily newspapers nationwide, including the Denver Post, San Jose Mercury News and Orange County Register. The hedge fund has a reputation for profoundly reducing the costs of the securities it acquires.
In July, Alden consolidated a firmer position on the Tribune board of directors, taking control of a third seat of seven in exchange for a deal to extend a standstill deal that would prevent the hedge fund from increasing its stake or make a hostile offer until after June 2021.
Accordingly, any agreement to increase participation would likely require the subscription of Tribune or a significant portion of non-Alden-affiliated shareholders. The company’s second-largest shareholder, with about 25 percent, is Patrick Soon-Shiong, a billionaire biotech investor who in 2018 bought the Los Angeles Times from Tribune for $ 500 million.
With the industry within reach of the economic impact of the coronavirus pandemic, Tribune has fired dozens of journalists and shut down many of its newsrooms altogether to save on real estate costs. In early December, Tribune agreed to sell its e-commerce business, Best Reviews, to Nexstar Media Group Inc.
for $ 160 million.
Write to Cara Lombardo to [email protected], Dana Cimilluca to [email protected] and Lukas I. Alpert to [email protected]
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It appeared in the December 31, 2020 print edition as “Fund seeks the full purchase of the Tribune chain.”