Hedge fund Alden Global buys newspaper chain Tribune Publishing

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The acquisition is long overdue and feared internally after the hedge fund became the company’s largest shareholder in 2019 with around 32% stake. Hundreds of Tribune employees signed a letter protesting the property, citing “the hedge fund’s well-documented history of extracting short-term profits from already slashed operations by cutting newsroom jobs and by refusing fair wages and benefits ”. Shortly after Alden took control, Tribune offered employee buyouts for the second time in two years.

Some employees in Tribune-owned newsrooms have sought alternative options to owning hedge funds. Hartford Courant staff members researched the non-profit property as part of the “Save Our Courant” campaign. The same was true for the union of the Baltimore Sun, with the “Save Our Sun” campaign.

In Tuesday’s press release, Alden announced that he was agreeing to sell the Baltimore Sun Media Group to Sunlight for All Institute, a non-profit organization led by Stewart Bainum Jr., president of the Choice Hotels hotel chain. International. The media group includes the Baltimore Sun, the Annapolis Capital Gazette, the Carroll County Times, and other local media.

Alden and Tribune said in a joint statement Tuesday that Tribune’s board approved the deal after a special committee assessed its options – including Alden’s proposal. The deal is expected to close in the second quarter of this year and requires the approval of two-thirds of shareholders not affiliated with Alden.

The announcement has already drawn criticism from some Tribune employees.

“Absolutely terrible news,” tweeted Gregory Pratt, mayor of The Tribune.

Pamela Wood, of the Baltimore Sun, said the Alden acquisition was “really horrible.”
Other media watchers, like Margaret sullivan, celebrated the sale of the Baltimore Sun to a nonprofit, calling it “the bright spot in Alden / Tribune 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,” Philip Franklin, Chairman of the Board and member of the special committee, said in a statement. “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. This positioning allowed the special committee to negotiate a premium price all in cash, which the committee concluded to be superior to the alternatives available. “

Tribune spokesperson Max Reinsdorf declined to comment on CNN Business beyond publication.



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