Sen. Charles Schumer to Watch Alden Global “Like a Hawk”
The Senate Minority Leader raised new concerns about the hedge fund’s strategies.
Charles Schumer says he’s keeping a close eye on hedge fund Alden Global Capital.
The Democratic Senator from New York has raised further concerns about Alden’s recent stake in Tribune Publishing, a publisher of local newspapers. Alden recently purchased a 25.2% stake in the firm from Michael Ferro.
“Any plans to reduce the size, scope or impact of the New York Daily News, as Alden has done in the past to other prominent newspapers, will be met with fierce resistance,” Schumer said in the statement.
The publishing giant owns the Chicago Tribune; the Baltimore Sun; Hartford Courant; Orlando Sentinel; South Florida’s Sun-Sentinel; and the New York Daily News. It also owns the Capital Gazette in Annapolis, Maryland; The Morning Call in Allentown, Pennsylvania; the Daily Press in Newport News, Virginia; and The Virginian-Pilot.
Alden Capital maintains a reputation for cutting costs, reducing staff, and running very lean operations in the business.
Sen. Charles Schumer and the New York Daily News
Meanwhile, Schumer had raised worries about Alden after the hedge fund tried a takeover this year for USA Today publisher Gannett.
Last week, Alden Capital paid $118 million for the stake. Furthermore, Alden already owned roughly 50 U.S. newspapers including the Denver Post and Boston Herald.
Schumer is also concerned about the future of the New York Daily News.
“The New York Daily News is one of this city’s crown jewels for its long history of coverage that has galvanized change, given a voice to the voiceless and held power to account. The sheer thought that some hedge fund, which believes in destroying value to make a quick buck, could send in a machete to New York’s ‘Hometown Newspaper’ should worry us all, and is why I will be watching the new (shareholders) like a hawk.”
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