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David Pecker of American Media LLC, the executive that oversaw the National Enquirer tabloid and was an ally of President Trump in the last election, will step down as head of the company under a merger deal.
American Media will be associated with Accelerate360 LLC, a logistics company, and will be renamed A360 Media, according to a statement released Friday. Pecker, who was president and CEO, will remain as executive advisor.
A360 Media will focus on its portfolio of famous magazines, such as Us Weekly, OK! and Life & Style. The company agreed to sell the National Enquirer to Hudson Media last year, although the parties have not announced the conclusion of this agreement. The hedge fund Chatham Asset Management is the primary owner of American Media, as well as one of the backers of Accelerate360.
Pecker, 68, is a longtime friend of Trump’s and has entered into an immunity deal with federal prosecutors in an investigation into the president’s former personal lawyer, Michael Cohen. The company has a related non-prosecution agreement covering crimes including perjury and obstruction of justice.
The deals stemmed from the company’s alleged efforts to help Trump by buying the rights to potentially damaging stories and refusing to publish them, a practice known as “catch and kill.”
The inquirer and his owner came under closer scrutiny after Amazon.com Inc. founder Jeff Bezos accused American Media of attempting to blackmail him with photos of him with a woman who was not his wife. To back up his claims, he published emails sent to his lawyer by executives at American Media.
The controversy engulfed Chatham, who was asked by New Jersey officials about the situation. The company has also been subject to review by securities regulators.
A360 Media plans to keep its headquarters in New York, but some operations will be moved to the Accelerate base in Georgia.
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