CHICAGO — A hedge fund dubbed a “destroyer of newspapers” has bought Tribune Publishing for $630 million, the company mentioned.
Alden Global Capital, which already had a 35-percent stake in Tribune Publishing, agreed to buy all remaining shares for $17.25 to take the company personal. Tribune Publishing stock was listed as $15.97 on the finish of buying and selling Tuesday. The per-share buy worth is $3 greater than what Alden Global Capital had supplied in December.
“Over the past year, the Company has taken a number of actions to adapt to an ever-changing business and industry environment, including the impact of COVID-19. These actions included strengthening the Company’s financial position, driving digital growth and investing in high-quality content to better serve customers, employees and communities,” Tribune Publishing chairman Philip G. Franklin mentioned in an announcement.
“This positioning enabled the special committee to negotiate a premium, all-cash price, which the committee concluded was superior to the available alternatives.”
Alden Global Capitol owns about 200 newspapers and has a repute for slashing newsroom budgets and shedding reporters and editors. For years, it has been generally known as the “destroyer of newspapers,” and earlier this month, Vanity Fair referred to as Alden the “hedge fun vampire that bleeds newspapers dry.”
The deal provides Alden management of the Chicago Tribune, Baltimore Sun, Hartford Courant, Virginian-Pilot, Orlando Sentinel, South Florida Sun Sentinel, New York Daily News, Capital Gazette, The Morning Call in Allentown, Pennsylvania, and the Daily Press in Newport News, Virginia.
Chicago Tribune Guild President Gregory Pratt responded to the “absolutely terrible news” on Twitter.
“We will proceed to battle @CTGuild for our newsroom and our metropolis, it doesn’t matter what occurs subsequent. But @chicagotribune wants native possession with a civic conscience. We are actually on the reverse excessive,” he wrote. “Whatever your politics, wherever you’re employed, please know: A gutted @chicagotribune can be devastating to our metropolis.”
Part of the deal consists of Alden signing a “non-binding term sheet” to promote The Baltimore Sun to Sunlight for All Institute, a public charity fashioned by Stewart Bainum Jr.
The sale is predicted to shut within the second quarter of 2021, pending approval by stockholders, the expiration or termination of the relevant ready durations below the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and different situations, in line with a Tribune Publishing statement.