courthousenews--2020-12-31--Hedge Fund Offers to Buy Tribune Publishing at $520M Valuation

( CN ) — A hedge fund that controls one-third of Tribune Publishing ’ s shares has offered to buy out the media conglomerate ’ s remaining shares and take total control of its operations , making its intentions official with a Securities and Exchange Commission filing released Thursday .
Alden Global Capital , current owner of 31.6 % of Tribune shares , sent a letter to Tribune on Dec. 14 offering $ 14.25 per share for the Chicago-based company ’ s remaining stock , calculating the publisher ’ s total value at $ 520.6 million .
The hedge fund @ @ @ @ @ @ @ what it termed a “ preliminary inquiry.
” Alden in recent years has developed a growing portfolio of media companies and newspapers , putting it in the crosshairs of scathing criticism from journalists and others in the media industry wary of the company ’ s track record of acquiring newspapers only to slash their budgets , shutter physical newsrooms and put reporters out of work .
Buying out Tribune would add the Chicago Tribune , the New York Daily News and the Baltimore Sun to its roster of prominent metropolitan dailies , among @ @ @ @ @ @ @ that the newspaper industry at large has grappled with grim financial troubles for years in the internet era , causing the shutdown of scores of local newspapers nationwide as the woefully cash-strapped industry continues its paradigm shift toward digital content and distribution .
According to a study released by Pew Research Center in April , U.S. newsroom employment dropped 23 % between 2008 and 2019 , going from around 114,000 employees—including reporters , editors and photographers—to around 88,000 .
The hemorrhaging is worst at newspapers , according to Pew , which dropped more @ @ @ @ @ @ @ the same timespan , plummeting roughly from 71,000 to 35,000 .
The Covid-19 pandemic , a scourge to countless industries in 2020 , has hit newspapers hard as well .
Chatham Asset Management , a New Jersey-based hedge fund that owns the National Enquirer , announced in July its deal to acquire McClatchy , the second largest newspaper publisher in the country .
One month later , the New York Daily News , a prominent tabloid run by Tribune since 2017 , permanently closed its Manhattan newsroom in tandem with at least four @ @ @ @ @ @ @ , a more than 100-year-old paper out of Allentown , Pennsylvania .
In 2019 , Gannett—a Virginia-based mass media company and owner of USA Today , the Milwaukee Journal Sentinel , the Detroit Free-Press and dozens of other newspapers—merged with GateHouse Media , a company controlled by the New Media Investment Group hedge fund , to become the largest newspaper company in the country .
Takeover of American newspapers by private equity firms like Alden has largely been met with simmering resentment and fear , if not outright revolt from newspaper workers .
@ @ @ @ @ @ @ dailies under Alden ’ s umbrella , ran a special opinion piece in 2018 blasting its hedge fund ownership ’ s harsh cutbacks .
Two investigative reporters at the Chicago Tribune undertook a public campaign seeking outside benefactors in order to avoid the consequences of Alden ’ s control , often characterized by severe austerity measures in the name of profitability .
Tribune ’ s troubles have not been for a lack of trying .
In 2016 , the company , which dates back to when the Chicago Tribune published its first edition @ @ @ @ @ @ @ tronc , ” a shortened version of “ Tribune online content.
” The move shifted the company ’ s focus to streamlined output centered on video and online platforms before it changed its name back to Tribune Publishing two years later after the venture proved unpopular and unsuccessful .
Joseph Russomanno , a professor at Arizona State University ’ s Walter Cronkite School of Journalism and Mass Communication , told Courthouse News on Thursday that “ in an era in which the economic vulnerability of the news media has been exposed , the @ @ @ @ @ @ @ concerning.
” More concerning , Russomanno added , was the fact that “ the buyer is a group that has no history in news and no tradition of informing the public , ” and journalism is a principled , truth-seeking field based on holding those in power accountable , which “ has little if anything to do with maximizing profits.
” Kathy Forde , an associate professor of journalism at the University of Massachusetts-Amherst , agreed in an email on Thursday that “ private equity firms are sucking the life out of the @ @ @ @ @ @ @ the process.
” “ If Alden buys out Tribune Publishing , we can expect more newsroom closures , more staffing cuts , and a profoundly diminished capacity for investigative and public good journalism ” across the nation , Forde predicted , citing the fact that Alden has already “ decimated ” a number of historic newspapers in Los Angeles , Boston , Philadelphia , Denver and St. Paul .
Alden could not be immediately reached on Thursday for comment on its plans for Tribune .

A hedge fund that controls one-third of Tribune Publishing’s shares has offered to buy out the media conglomerate’s remaining shares and take total control of its operations, making its intentions official with a Securities and Exchange Commission filing released Thursday.
(CN) — A hedge fund that controls one-third of Tribune Publishing’s shares has offered to buy out the media conglomerate’s remaining shares and take total control of its operations, making its intentions official with a Securities and Exchange Commission filing released Thursday.
Alden Global Capital, current owner of 31.6% of Tribune shares, sent a letter to Tribune on Dec. 14 offering $14.25 per share for the Chicago-based company’s remaining stock, calculating the publisher’s total value at $520.6 million. The hedge fund says it has not received feedback on what it termed a “preliminary inquiry.”
Alden in recent years has developed a growing portfolio of media companies and newspapers, putting it in the crosshairs of scathing criticism from journalists and others in the media industry wary of the company’s track record of acquiring newspapers only to slash their budgets, shutter physical newsrooms and put reporters out of work.
Buying out Tribune would add the Chicago Tribune, the New York Daily News and the Baltimore Sun to its roster of prominent metropolitan dailies, among others.
It’s no secret that the newspaper industry at large has grappled with grim financial troubles for years in the internet era, causing the shutdown of scores of local newspapers nationwide as the woefully cash-strapped industry continues its paradigm shift toward digital content and distribution.
According to a study released by Pew Research Center in April, U.S. newsroom employment dropped 23% between 2008 and 2019, going from around 114,000 employees—including reporters, editors and photographers—to around 88,000. The hemorrhaging is worst at newspapers, according to Pew, which dropped more than half of their newsroom employees in the same timespan, plummeting roughly from 71,000 to 35,000.
The Covid-19 pandemic, a scourge to countless industries in 2020, has hit newspapers hard as well. Chatham Asset Management, a New Jersey-based hedge fund that owns the National Enquirer, announced in July its deal to acquire McClatchy, the second largest newspaper publisher in the country. One month later, the New York Daily News, a prominent tabloid run by Tribune since 2017, permanently closed its Manhattan newsroom in tandem with at least four Tribune-owned local dailies including The Morning Call, a more than 100-year-old paper out of Allentown, Pennsylvania.
In 2019, Gannett—a Virginia-based mass media company and owner of USA Today, the Milwaukee Journal Sentinel, the Detroit Free-Press and dozens of other newspapers—merged with GateHouse Media, a company controlled by the New Media Investment Group hedge fund, to become the largest newspaper company in the country.
Takeover of American newspapers by private equity firms like Alden has largely been met with simmering resentment and fear, if not outright revolt from newspaper workers. The Denver Post, one of the dailies under Alden’s umbrella, ran a special opinion piece in 2018 blasting its hedge fund ownership’s harsh cutbacks. Two investigative reporters at the Chicago Tribune undertook a public campaign seeking outside benefactors in order to avoid the consequences of Alden’s control, often characterized by severe austerity measures in the name of profitability.
Tribune’s troubles have not been for a lack of trying. In 2016, the company, which dates back to when the Chicago Tribune published its first edition in 1847, rebranded itself as “tronc,” a shortened version of “Tribune online content.” The move shifted the company’s focus to streamlined output centered on video and online platforms before it changed its name back to Tribune Publishing two years later after the venture proved unpopular and unsuccessful.
Joseph Russomanno, a professor at Arizona State University’s Walter Cronkite School of Journalism and Mass Communication, told Courthouse News on Thursday that “in an era in which the economic vulnerability of the news media has been exposed, the sale of any major news organization is concerning.”
More concerning, Russomanno added, was the fact that “the buyer is a group that has no history in news and no tradition of informing the public,” and journalism is a principled, truth-seeking field based on holding those in power accountable, which “has little if anything to do with maximizing profits.”
Kathy Forde, an associate professor of journalism at the University of Massachusetts-Amherst, agreed in an email on Thursday that “private equity firms are sucking the life out of the American newspaper industry and endangering democracy in the process.”
“If Alden buys out Tribune Publishing, we can expect more newsroom closures, more staffing cuts, and a profoundly diminished capacity for investigative and public good journalism” across the nation, Forde predicted, citing the fact that Alden has already “decimated” a number of historic newspapers in Los Angeles, Boston, Philadelphia, Denver and St. Paul.
Alden could not be immediately reached on Thursday for comment on its plans for Tribune.


courthousenews--2020-12-31--Veto Override, Stimulus Boost Stall in Senate on New Year’s Eve

WASHINGTON ( CN ) — As 2020 and President Donald Trump ’ s single term in office draw to a close , the Senate spent the last day of a tumultuous year debating whether to override his veto of the $ 740 billion defense spending bill or approve $ 2,000 stimulus checks , with no real movement on either .
The hours-long debate on Thursday followed a tense day in Congress just 24 hours before , when Senate Majority Leader Mitch McConnell snuffed out , with his single objection , any realistic hope of pandemic-weary Americans receiving a direct relief @ @ @ @ @ @ @ the $ 600 that has already been approved .
Under Senate procedure , debate will continue Thursday and likely into the evening .
It is expected that a final vote on the veto override could come on Friday or even Saturday .
Only a simple majority of 60 votes is needed to override Trump ’ s veto of the defense bill or pass additional relief for Americans .
Bernie Sanders , the independent senator from Vermont who caucuses with Democrats , was joined again on Thursday by Democrats like Chuck Schumer of New @ @ @ @ @ @ @ a maneuver to delay the Senate ’ s vote to override Trump ’ s veto of the defense bill in order to get an up or down vote on the bigger checks .
The House voted to override Trump ’ s veto of the defense package on Monday , but the Senate must do the same for the bill to become law .
Vowing to object to the vote to override Trump if McConnell would not hold a separate vote on the singular issue of relief payments , Sanders excoriated the Kentucky Republican @ @ @ @ @ @ @ said , live in 10 of the 25 poorest counties in America .
Like most states , Kentucky has been badly pinched by the Covid-19 pandemic , with unemployment steadily increasing , food insecurity spreading and infection rates continuing to climb .
“ I am sure Senator McConnell is aware that throughout his state , you have got thousands , tens of thousands , of people living in economic desperation .
And I ’ m talking about counties where 30 % to 40 % of residents are trying to survive on less than @ @ @ @ @ @ @ said before noting that 22 % of all children in McConnell ’ s state live in poverty .
“ Do you think they might need a little bit of help ?
” Despite pleading from Democrats for a simple up or down vote on stimulus checks , the majority leader was unmoved .
McConnell insists that legislation approving $ 2,000 stimulus checks be combined with two of Trump ’ s pet issues – a repeal of liability protections for tech companies under Section 230 of the Communications Decency Act and the formation of @ @ @ @ @ @ @ ’ s baseless allegations of voter fraud in the 2020 election .
The Department of Justice already found no fraud in the November election and that opinion was shared by the U.S. intelligence community .
Speaking from the Senate floor Thursday , McConnell said he would not consider voting on direct payments alone because the relief would not be targeted enough and money could potentially flow to those who may not need it , which he argued would unnecessarily inflate the national deficit .
“ Socialism for rich people is a terrible way @ @ @ @ @ @ @ actually struggling .
So , let me say that again : Borrowing from our grandkids to do socialism for rich people is a terrible way to get help to families who actually need it , ” McConnell said .
The House voted Monday to pass the CASH Act , which would send $ 2,000 to each individual making less than $ 75,000 and $ 4,000 to each married couple jointly earning $ 150,000 or less .
The IRS is currently in the process of sending out the previously approved $ 600 payments to @ @ @ @ @ @ @ filed a joint tax return .
McConnell ’ s assertions about unfair distribution were seized upon on Thursday by Schumer and Sanders alike , with both lawmakers noting that the majority leader ’ s qualms about socialism for the wealthy were missing in action when the Senate approved President Trump ’ s Tax Cuts and Jobs Act in 2017 .
That bill delivered a $ 1.9 trillion tax break to corporations and for the nation ’ s most wealthy citizens .
The slight from Democrats was not just a partisan barb .
The @ @ @ @ @ @ @ 22-page report last June that the tax breaks had little positive effect on the U.S. economy .
Instead , they came at the expense of working and middle-class families .
“ I hope that every American heard the objections by these Republicans senators .
I hope every American who has their water or heat or electricity shut off or had eviction notices stapled on top of one another to their door , or had to choose which meal to skip on a given day – I hope they all heard the reason they @ @ @ @ @ @ @ because Leader McConnell thinks it could wind up in the hands of quote ‘ Democrats ’ rich friends , ’ ’ Schumer said .
Repeated offers from Schumer , Durbin and Sanders on Thursday to break apart McConnell ’ s proposed combo legislation failed repeatedly .
“ Trump couldn ’ t care less about how the bills are packaged , ” Schumer said .
If the incoming Congress wants to reevaluate liability shields for companies online , they can in the new session , just days away , Schumer said .
The New @ @ @ @ @ @ @ vote on Section 230 repeal or “ whatever right-wing conspiracy theory ” Republicans wanted considered .
All Democrats were asking the majority leader for was a simple vote on the stimulus checks in the “ world ’ s greatest deliberative body , ” he said .
As of the final day of 2020 , nearly 20 million Americans have been infected with Covid-19 and over 340,000 have died , according to a Johns Hopkins University tracker .

As 2020 and President Donald Trump’s single term in office draw to a close, the Senate spent the last day of a tumultuous year debating whether to override his veto of the $740 billion defense spending bill or approve $2,000 stimulus checks, with no real movement on either.
WASHINGTON (CN) — As 2020 and President Donald Trump’s single term in office draw to a close, the Senate spent the last day of a tumultuous year debating whether to override his veto of the $740 billion defense spending bill or approve $2,000 stimulus checks, with no real movement on either.
The hours-long debate on Thursday followed a tense day in Congress just 24 hours before, when Senate Majority Leader Mitch McConnell snuffed out, with his single objection, any realistic hope of pandemic-weary Americans receiving a direct relief payment of $2,000, rather than the $600 that has already been approved.
Under Senate procedure, debate will continue Thursday and likely into the evening. It is expected that a final vote on the veto override could come on Friday or even Saturday. Only a simple majority of 60 votes is needed to override Trump’s veto of the defense bill or pass additional relief for Americans.
Bernie Sanders, the independent senator from Vermont who caucuses with Democrats, was joined again on Thursday by Democrats like Chuck Schumer of New York and Dick Durbin of Illinois in a maneuver to delay the Senate’s vote to override Trump’s veto of the defense bill in order to get an up or down vote on the bigger checks.
The House voted to override Trump’s veto of the defense package on Monday, but the Senate must do the same for the bill to become law.
Vowing to object to the vote to override Trump if McConnell would not hold a separate vote on the singular issue of relief payments, Sanders excoriated the Kentucky Republican.
McConnell’s constituents, Sanders said, live in 10 of the 25 poorest counties in America. Like most states, Kentucky has been badly pinched by the Covid-19 pandemic, with unemployment steadily increasing, food insecurity spreading and infection rates continuing to climb.
“I am sure Senator McConnell is aware that throughout his state, you have got thousands, tens of thousands, of people living in economic desperation. And I’m talking about counties where 30% to 40% of residents are trying to survive on less than $20,000 a year,” Sanders said before noting that 22% of all children in McConnell’s state live in poverty. “Do you think they might need a little bit of help?”
Despite pleading from Democrats for a simple up or down vote on stimulus checks, the majority leader was unmoved.
McConnell insists that legislation approving $2,000 stimulus checks be combined with two of Trump’s pet issues – a repeal of liability protections for tech companies under Section 230 of the Communications Decency Act and the formation of a commission to investigate the White House’s baseless allegations of voter fraud in the 2020 election.
The Department of Justice already found no fraud in the November election and that opinion was shared by the U.S. intelligence community.
Speaking from the Senate floor Thursday, McConnell said he would not consider voting on direct payments alone because the relief would not be targeted enough and money could potentially flow to those who may not need it, which he argued would unnecessarily inflate the national deficit.
“Socialism for rich people is a terrible way to help the American families that are actually struggling. So, let me say that again: Borrowing from our grandkids to do socialism for rich people is a terrible way to get help to families who actually need it,” McConnell said.
The House voted Monday to pass the CASH Act, which would send $2,000 to each individual making less than $75,000 and $4,000 to each married couple jointly earning $150,000 or less. The IRS is currently in the process of sending out the previously approved $600 payments to individuals and $1,200 for couples who filed a joint tax return.
McConnell’s assertions about unfair distribution were seized upon on Thursday by Schumer and Sanders alike, with both lawmakers noting that the majority leader’s qualms about socialism for the wealthy were missing in action when the Senate approved President Trump’s Tax Cuts and Jobs Act in 2017. That bill delivered a $1.9 trillion tax break to corporations and for the nation’s most wealthy citizens.
The slight from Democrats was not just a partisan barb. The independent Congressional Research Service confirmed in a 22-page report last June that the tax breaks had little positive effect on the U.S. economy. Instead, they came at the expense of working and middle-class families.
“I hope that every American heard the objections by these Republicans senators. I hope every American who has their water or heat or electricity shut off or had eviction notices stapled on top of one another to their door, or had to choose which meal to skip on a given day – I hope they all heard the reason they will not receive $2,000 checks is because Leader McConnell thinks it could wind up in the hands of quote ‘Democrats’ rich friends,’’ Schumer said.
Repeated offers from Schumer, Durbin and Sanders on Thursday to break apart McConnell’s proposed combo legislation failed repeatedly.
“Trump couldn’t care less about how the bills are packaged,” Schumer said.
If the incoming Congress wants to reevaluate liability shields for companies online, they can in the new session, just days away, Schumer said. The New York Democrat even offered to hold a vote on Section 230 repeal or “whatever right-wing conspiracy theory” Republicans wanted considered.
All Democrats were asking the majority leader for was a simple vote on the stimulus checks in the “world’s greatest deliberative body,” he said.
As of the final day of 2020, nearly 20 million Americans have been infected with Covid-19 and over 340,000 have died, according to a Johns Hopkins University tracker.