Hedge fund Alden looks for another large newspaper chain

Hedge Fund Alden Global CapitalOne of the nation’s largest newspaper owners, known for drastically cutting costs and layoffs, has offered to acquire a local newspaper chain Profit enterprise About 141 million US dollars.

At the press conference on Monday, Alden Said it sent plumBoard with quote letter. It already owns 6% plumAnd proposed to purchase the remaining shares at a price of $24 per share. Alden Said it did not foresee regulatory issues that could complicate transactions.

plum The stock price rose 22% to $22.59 on Monday. A spokesperson for the Iowa company did not immediately respond to a request for comment. plumThe newspapers include the “St. Louis Post” and “Buffalo News”, as well as dozens of smaller newspapers in more than 20 states.

Alden Earlier this year, Tribune acquired the Tribune newspaper. The transaction was met with fierce opposition from Tribune’s own reporters and Tribune market community leaders who tried to find local purchases for newspapers including the Baltimore Sun and Chicago Tribune. Home, but ultimately unsuccessful. Alden It also owns the Denver Post, Orange County Chronicle, and Boston Herald.

Alden Known for cutting costs, including the sale of newspapers’ real estate, this is even beyond the overall transformation of the newspaper industry in this direction.The newspaper business has been consolidating because it is struggling to cope with digital transformation and shrinking revenue. Financial companies such as Alden The role of the owner is becoming more and more prominent. According to data from the Pew Research Center, from 2004 to 2018, the number of jobs in newsrooms has been reduced by nearly half, and the pandemic has exacerbated these pressures. According to a study by the University of North Carolina, in the past 15 years, about a quarter of newspapers across the country have been closed.

Alden Said on Monday that its offer is plum It is to “reiterate our major commitment to the newspaper industry and our long-term support for local newspapers.”

this plum The company acquired billionaire Warren Buffett’s newspaper chain from Buffett’s Berkshire Hathaway in 2020, thereby expanding significantly.At the time, Buffett said: “For a simple reason, we have zero interest in selling the group to anyone else: we believe plum Best suited to meet industry challenges. “

Buffett did not immediately respond to a request for comment on Monday.

In a series of tweets on Monday, the Omaha World Herald reporters union condemned Alden, Calling the hedge fund “terrible” and “mercenary”, these funds work in the news editorial department and increase subscription prices in an attempt to squeeze money out of newspapers.

Copyright © 2021 The Washington Times, LLC.

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