Tribune Publishing Company announced that stockholders voted to approve the merger agreement with Alden Global Capital. The vote was at a special meeting of the Company’s stockholders.
Furthermore, here are the details and next steps:
- Holders of approximately 81.28% of the shares held by non-Alden stockholders voted to approve the merger agreement. Moreover, this was in excess of the two-thirds minimum required.
- Alden will acquire all of the outstanding shares of Tribune common stock not currently owned by Alden for $17.25 per share in cash.
- The transaction is expected to close by May 25, 2021.
- Tribune will become a privately held company.
Tribune Publishing operated local media businesses in eight markets with titles including the Chicago Tribune, New York Daily News and The Baltimore Sun. The company’s employees in these markets and other observers and stakeholders reacted to the vote.
Chicago Tribune columnist, Rex Huppke, said the vote to allow the sale to Alden was “terrible news for the Chicago Tribune and all our sister newspapers.”
In addition, Huppke said he and his colleagues “will continue to do our very best for our readers and our communities.”
David Axelrod, who has deep roots in Chicago and at the Tribune, called today a “gut punch”.
The Wall Street Journal says Alden has a “reputation for cost-cutting.”
Gregory Pratt covers Chicago’s mayor for the Tribune. The journo says “we are all deeply concerned.”
The News Guild says “Tribune Publishing shareholders let everyone down.” John Schleuss writes in a blog post on the Guild’s website:
Thousands of NewsGuild-CWA members, myself included, were upset by Tribune Publishing’s announcement today that shareholders approved the company’s takeover by Alden Global Capital, a hedge fund known as “the destroyer of newspapers.”
Our union and our community coalitions will continue to hold Alden Global Capital accountable for the decisions they make going forward. And we will do whatever it takes to save local news.
John Schleuss, NewsGuild-CWA
Newspaper Powerhouse
Alden owns MediaNewsGroup, which operates 200 publications. Titles include the Denver Post, Mercury News, Orange County Register and Boston Herald. Alden now adds Tribune Publishing.
As a result, Alden will now control media properties in half of the top 10 markets in the United States. Moreover, this includes the three biggest media markets in the country, New York, Los Angeles and Chicago.
