The hedge fund Alden Global is buying the newspaper network Tribune Publishing

The hedge fund Alden Global is buying the newspaper network Tribune Publishing

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The acquisition was long-awaited and feared internally after the hedge fund became the company’s largest shareholder in 2019, with around 32% stake. Hundreds of Tribune employees signed a letter to protest ownership, citing the hedge fund’s “well-documented history of extracting short-term profits from already lean operations, cutting newsroom jobs and denying fair wages and benefits.” Shortly after Alden took over, Tribune offered acquisitions to employees for the second time in two years.

Some employees of Tribune-owned newsrooms sought alternative options for ownership of hedge funds. Hartford Courant employees sought nonprofit property through the “Save Our Courant” campaign. The same happened with the union of The Baltimore Sun, with the campaign “Save Our Sun”.

In Tuesday’s press release, Alden announced that it has agreed to sell the Baltimore Sun Media Group to the Sunlight for All Institute, a nonprofit organization led by Stewart Bainum Jr., president of the Choice Hotels International hotel chain. The media group includes The Baltimore Sun, Annapolis Capital Gazette, The Carroll County Times and other local vehicles.

Alden and Tribune said in a joint statement on Tuesday that the Tribune board approved the deal after a special committee evaluated their options – including Alden’s proposal. The deal is expected to close in the second quarter of this year and requires the approval of two-thirds of shareholders not affiliated with Alden.

The announcement has already drawn criticism from some Tribune employees.

“Absolutely terrible news,” tweeted Gregory Pratt, a city reporter for The Tribune.

Baltimore Sun’s Pamela Wood said the acquisition of Alden is “truly awful.”
Other media observers, such as Margaret Sullivan, celebrated the sale of the Baltimore Sun to a nonprofit organization, calling it “a bright spot in the development of Alden / Tribune”.
Tribune Publishing also has Sun Sentinel and Orlando Sentinel, Virginia’s Daily Press and The Virginian-Pilot, and The Morning Call of Lehigh Valley, Pennsylvania. The company closed several newsrooms during the pandemic, including The Daily News, The Morning Call and The Orlando Sentinel.

“In the past year, the company has taken a number of actions to adapt to an ever-changing business and industry environment, including the impact of COVID-19,” said Philip Franklin, chairman and member of the special committee, said in an announcement. “These actions included strengthening the Company’s financial position, driving digital growth and investing in high quality content to better serve customers, employees and communities. This positioning allowed the special committee to negotiate a premium price, all-cash, which it concluded was superior to the available alternatives. “

Tribune spokesman Max Reinsdorf declined to comment to CNN Business after the launch.

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