Alden Global Capital’s proposal to purchase Tribune Publishing was approved by shareholders Friday morning. Alden acquired all of the outstanding shares of Tribune Publishing common stock not currently owned by Alden for $17.25 per share in cash. The transaction is expected to close in the second quarter of 2021. Tribune will now become a privately held company.
Despite last minute urging from local communities with Tribune newspapers, this was seen as the likely outcome after Choice Hotel Chairman Stewart Bainum’s bid for Tribune fell apart. Bainum’s offer was eventually scuttled by a special committee of Tribune’s board. Hansjörg Wyss stepped back his support of a joint proposal with Bainum.
Bainum was interested in controlling his home state’s Baltimore Sun, while Wyss had his eyes on the flagship Chicago Tribune. The Sun published a statement from the Choice Hotel Chairman after the Alden deal was approved.
“While our effort to acquire the Tribune and its local newspapers has fallen short, the journey reaffirmed my belief that a better model for local news is both possible and necessary.
Today, my focus remains where it began: in the city of Baltimore and my home state of Maryland. I am busy evaluating various options, all in the pursuit of creating locally-supported, not-for-profit newsrooms that place stakeholders above shareholders and journalistic integrity above all.
Baltimore has a proud tradition of impactful journalism that resonates within its borders and far beyond, and I am excited to be working with those who are committed to writing its next chapter. In the days ahead, I expect to make an announcement that might just make some news on its own.”
Stewart Bainum statement via The Baltimore Sun
Bainum has the opportunity to create his own Maryland based local news entity from the ground up. Alternately, he could reestablish negations with Alden for control of The Baltimore Sun.
Key Vote Abstained
The Alden-Tribune deal always needed shareholder approval. Dr. Patrick Soon-Shiong held a powerful set of cards as he controlled 25% of Tribune stock. However, The Chicago Tribune reports that Dr. Soon-Shiong abstained from voting this morning. A spokeswoman told the Chicago newspaper that Dr. Soon-Shiong’s investment in Tribune Publishing is a “passive investment.” He is totally focused on The Los Angeles Times and San Diego Union Tribune. Dr. Soon-Shiong bought the newspapers from Tribune in 2018.
The Los Angeles Times recently announced that Kevin Merida has been named executive editor. LA Times owner Dr. Patrick Soon-Shiong heralded Merida’s arrival as “the next chapter of The Los Angeles Times in the digital era.”
Newspaper Powerhouse
Alden owns MediaNewsGroup, which operates 200 publications. Titles include the Denver Post, Mercury News, Orange County Register and Boston Herald. The firm will now add Tribune Publishing. Tribune, briefly known as tronc, was a media company which owned local media businesses in eight markets. Tribune newspapers include the Chicago Tribune, New York Daily News, Baltimore Sun and Orlando Sentinel.
Alden will now control media properties in half of the top 10 markets in the United States. This includes the three biggest media markets in the country, New York, Los Angeles and Chicago.
THE TRIBUNE PUBLISHING-ALDEN GLOBAL CAPITAL SAGA Alden Global Capital Offers to Buy Tribune Publishing - December 31, 2020 Tribune Responds to Alden Acquisition Proposal - January 1, 2021 Connecticut Attorney General Has Questions For Alden - January 29, 2021 Alden Global Capital Will Acquire Tribune Publishing - February 16, 2021 Stewart W. Bainum Jr. Wants to Acquire Tribune - March 16, 2021 Tribune Deems Bainum-Wyss Proposal as Potentially “Superior” - April 5, 2021 Here’s Why Tribune Continues to Recommend Alden Merger Deal - April 16, 2021 Report: Hansjörg Wyss Pulls Out of Bid For Tribune - April 17, 2021 Tribune Deems Bainum Offer No Longer Reasonably Expected to Lead to a “Superior Proposal” - April 19, 2021 Does Anyone Want to Buy The Chicago Tribune? - May 1, 2021 State Treasurers Urge Tribune To Consider Bainum Bid - May 14, 2021
