Alden Global Capital Buys Stake in Tribune Publishing
Are layoffs coming to the iconic publishing company?
Alden Global Capital has purchased Michael Ferro’s 25.2% stake in Tribune Publishing. Ferro was the largest shareholder of the newspaper company. The deal also priced the stake at 9 million shares at $13 each. That brings the value of Ferro’s stake to $117 million.
In addition, Tribune is talking about adding two Alden representatives to its board. That has raised questions about the future of Tribune Publishing. As Bloomberg noted Tuesday, Alden Global Capital is known for layoffs.
Alden Global Capital and the Tribune Deal
One has to question what the Chicago Tribune’s Robert Channick wrote on Tuesday. Was it the anatomy of a deal, or was it a potential obituary to jobs at his company. Further, large newspapers like the Tribune have struggled with the rise of the internet and less interest in traditional journalism.
Tribune Company had also attempted to merge with McClatchy, but the talks fell apart last year. Alden has backed MNG Enterprises, a firm that tried to purchase Gannett earlier this year. MNG, which owns the Denver Post and several other newspapers, has laid off a large number of people from newsroom jobs.
Meanwhile, Alden Global Capital owns roughly 200 newspapers through the support of MNG and control of Digital First Media. The Tribune welcomed its latest shareholder.
“The Tribune Publishing Board of Directors looks forward to working with Alden to enhance our company’s value as the company continues to provide valuable journalism for our customers and communities,” David Dreier, Tribune chairman, said in a press release.
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