Two unlikely billionaires could be close by derailing a massive newspaper deal that would likely have resulted in the loss of hundreds of local journalism jobs across the country.
Leading the news: Maryland Hotel mogul Stewart Bainum Jr. and Swiss billionaire Hansjörg Wyss have reportedly agreed to set aside more than $ 600 million to help fund a $ 680 million bid for Tribune Publishing. , father of many of America’s most iconic newspapers.
- According to the Wall Street Journal, the offer of billionaires can now be recommended for consideration by the Tribune board to its shareholders for a cheaper offer from private equity giant Alden Global Capital.
- In February, Alden said he would buy the rest of Tribune Publishing, the parent company of the Chicago Tribune, New York Daily News and other local newspapers, in a deal that valued Tribune at about $ 630 million.
- On Sunday, The Journal reported that Banium Jr. and Wyss managed to secure funding for its offer after initially proposing to charge $ 200 million of its own dollars. Alden will have four days to submit a higher bid, or he runs the risk of losing the deal, according to The Journal.
Be smart: Alden Global Capital is a hedge fund known for reducing journalists to local newspapers to maximize profits. He has spent years positioning himself as the alleged buyer of Tribune, incrementally increasing his stake in the listed company.
- The newspaper reported that public requests from Chicago Tribune reporters to save the newspaper from Alden’s planned destruction is what inspired Wyss to run for office.
- Last weekend, The New York Times reported that Wyss was joining Bainum Jr. in his candidacy for the roles of Tribune, with plans to own Chicago Tribune.
- Bainum Jr. he originally said he would buy the Baltimore Sun, The Capital Gazette in Annapolis, and a few other smaller Maryland papers from Tribune for $ 65 million reported to turn the newsgroup into a nonprofit.
- The Journal reports that Banium Jr. it is still planning to turn Margland-based roles into non-profit organizations and leave them controlled by private trusts.
Be smart: Other wealthy individuals are apparently looking for ways to help save their local newspapers from the possible acquisition of Alden.
- Last week, The Journal reported that a Florida investor named Mason Slaine, who is a minority investor in Tribune, was willing to bid $ 100 million in the Tribune bid led by Bainum Jr.
- The WSJ noted Sunday that Slaine is not included in the new bid submitted to Banium Jr.’s Trubune’s Board. and Wyss.
- Slaine reportedly observed ownership of the two Florida Tribune newspapers, the Orlando Sentinel and the Sun Sentinel in Fort Lauderdale.
- Last weekend, the Morning Call, a document representing Lehigh Valley, Pennsylvania, owned by Tribune Publishing, reported that a Manhattan investor was the mysterious bid for a $ 30 million to $ 40 million bid.
In depth: Billionaires pick up the media as a new form of philanthropy.