Business & Investment

Hedge fund Alden Global proposes to buy Tribune Publishing

The Chicago Tribune newspaper vending machines or “honor boxes” are located on the sidewalks of Chicago, Illinois.

Christopher Dilt | Bloomberg | Getty Images

Tribune PublishingAlden Global Capital, its largest shareholder, said Thursday that it offered to take full control of the Chicago Tribune’s owners for $ 520.6 million.

Known for its publisher’s hostile takeover bid, Alden holds a 32% stake in Tribune.

The hedge fund offer valued the newspaper chain at $ 14.25 per share. This represents a premium of 11.4% of the closing price of the company’s stock.

The Wall Street Journal, First reported a potential dealThe hedge fund will be a director of the Chicago Tribune Publishing Company in July in exchange for an agreement to extend a suspension transaction that would prevent Alden from increasing its shares and bidding hostile to the Tribune until June 2021 and beyond. He said he had won the third seat of the meeting.

Tribune did not immediately respond to the request for comment.

Newspaper chains, owners of the New York Daily News and Baltimore Sun, saw a decline in revenue this year as the Covid-19 pandemic hit the publishing industry.

According to a survey released last month, printed newspapers have lost overall consumer reach during the health crisis.

Commercial news media, especially advertising-based media, newspapers, and local media, are the victims of the pandemic. According to a survey by the Reuters Institute for the Journalism, A research center at Oxford University that tracks media trends.

Hedge fund Alden Global proposes to buy Tribune Publishing Hedge fund Alden Global proposes to buy Tribune Publishing

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