Alden Global Capital which is a hedge fund has now become the biggest shareholder of a company known as Tribune Publishing. This is a company which owns Chicago Tribune, New York Daily News and Baltimore Sun.
Alden which is a hedge fund which is known for slashing costs and layoffs at the newspapers which it acquires has bought as much as 25% stake from Michael Ferro, Tribune Chairman, said Tribune on Tuesday.
Tribune has said that Alden has paid close to $118 million for this stake and also that it is in talks with Alden for adding two board seats.
Ferro had stepped down from the post of Chairman of Tribune in the year 2018 in the wake of accusations of sexual misconduct. The time he spent at Tribune had been marked by the company’s name being changed to Tronc, a move that later saw being reversed after public maligning. The sale of Los Angeles Times and also the pushing off a merger bid from Gannett which is its rival.
The industry has been consolidating and has been struggling with a transition to digital newspapers and the financial firms being as involved as their investors and owners. Gannett is now owned by GateHouse with the help from Apollo that is a private equity firm. Another firm called Fortress has backed GateHouse and has managed the combined chain of GateHouse and Gannett.
Denver Post is owned by Digital First Media of Alden and so is Detroit News, Orange County Register and a lot of other newspapers. They also attempted to buy before deal GateHouse.
While all the companies of newspaper have been impacted by the downturn in industry, Digital First Media has suffered the most for cutting costs.