Tribune Publishing is the latest major news operation to be bought up by a hedge fund.
The company has agreed to be acquired by New York-based Alden Global Capital, which currently owns nearly 32% of the company.
The deal is valued at $630 million, the Chicago Tribune reports.
The agreement has Alden paying $17.25 per share for Tribune Publishing. Alden is operated by Heath Freeman and Randall Smith, a member of the Tribune board.
Upon completion of the transaction, Tribune will become a privately held company, and its common stock will no longer be listed on any public market.
The deal says the Baltimore Sun will go to the Sunlight for All Institute, a charity created by Stewart Bainum Jr. Bainum is the chairman of Choice Hotels International and had served in the Maryland legislature as a Democrat.
Tribune Publishing owns the Chicago Tribune, New York Daily News, Baltimore Sun, Orlando Sentinel, South Florida’s Sun-Sentinel, Virginia’s Daily Press, The Virginian-Pilot, The Morning Call of Lehigh Valley, Pennsylvania, and the Hartford Courant.
The transaction is expected to close in the second quarter of 2021, said a statement from Tribune Publishing.
The buy will undoubtedly cause consternation among some, as Alden is known for cost-cutting.
Poynter has more detail here.
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