Politico’s look at the LA Times has some interesting tidbits, but it’s hardly a takedown

Patrick Soon-Shiong. Photo (cc) 2019 by the World Economic Forum.

Patrick Soon-Shiong came along too late to make the cut. In mid-2018, the celebrity surgeon bought the Los Angeles Times and several other papers for $500 million. My book about a new generation of wealthy newspaper owners, “The Return of the Moguls,” had just been published.

Too bad. Soon-Shiong is at least as interesting as the owners I wrote about: Jeff Bezos, who bought The Washington Post and re-established the legendary paper as a powerhouse; John Henry, who slowly transformed The Boston Globe into a growing and profitable enterprise; and Aaron Kushner, who poured money into the Orange County Register only to fail at attracting enough advertisers and readers to pay for his profligate spending.

Please support this free source of news and commentary by becoming a member of Media Nation for just $5 a month.

Now Politico has weighed in with a lengthy story about the Times under Soon-Shiong that portrays his ownership as something of a mixed bag. He’s invested in the paper, reversing years of cost-cutting by its previous owner, Tribune Publishing (which for a time was known as tronc), and he’s put a highly regarded editor, Kevin Merida, in charge of the newsroom. But his interest in the paper seems to wax and wane, and his daughter, Nika Soon-Shiong, is portrayed as interfering in the newsroom.

I have to say that I’m puzzled by some of the wailing. The Politico article, by Daniel Lippman, Christopher Cadelago and Max Tani, claims that Nika Soon-Shiong has inserted herself into the process of endorsing political candidates as though that were somehow a bad thing. Now, the Times may be making some dumb endorsements, such as its decision to back Nika Soon-Shiong ally Kenneth Mejia for city controller. Mejia, according to the Times’ own reporting, regards both Joe Biden and Donald Trump as “sexual predators.”

But a newspaper’s owners are free to insert themselves into the opinion pages as much as they’d like. A good owner will keep a distance from news operations, but the opinion section is their playground. John and Linda Henry are involved in the Globe’s editorial pages and no one thinks anything of it. Jeff Bezos’ lack of interest in the Post’s opinion operation is unusual.

Nika Soon-Shiong has also expressed her leftist views in a tweet (which she deleted) critical of her own paper’s crime coverage and in suggestions for story coverage. There is, for instance, this, which I find entirely benign, even salutory:

In 2020, Nika Soon-Shiong started participating in staff meetings about the paper’s failures in covering race and how it could become more inclusive in hiring. She suggested the paper avoid using the word “looting” when covering the unrest over police brutality, which inspired the paper to tweak style guidelines.

Times company leaders at the time asked then-top opinion editor Sewell Chan to brainstorm ways that Nika Soon-Shiong could get more involved in the paper. He talked with her about whether working with the opinion section would be a possibility. (Chan declined to comment.)

Politico quotes Merida as saying that Nika Soon-Shiong has “a right to critique our journalism, offer story ideas and other suggestions she believes will help make us better,” and that the “same right is extended to those we cover and to those who read us.” The fact-checker rates that statement as 100% true.

Patrick Soon-Shiong is a bit of an oddball. A profile in The New Yorker last year by Stephen Witt raised questions about his success as a pharmaceutical entrepreneur. But he has been a far better owner of the LA Times and The San Diego Union-Tribune, a throw-in that was part of the Times deal, than Tribune Publishing had been. Indeed, Soon-Shiong’s one unforgivable act as a newspaper owner was a non-act — his decision to do nothing to stop the sale of Tribune to the hedge fund Alden Global Capital, which of course began gutting its papers as soon as the deal was consummated.

Tribune owns some of our most storied newspapers, including the Chicago Tribune, The Baltimore Sun and the Hartford Courant — the oldest continuously published newspaper in the country. Soon-Shiong, a billionaire, could have stopped the transaction and helped Baltimore hotel magnate Stewart Bainum with his bid to buy the chain. Instead, Alden wound up with Tribune, and Bainum has launched a digital nonprofit called The Baltimore Banner. In an interview with Brian Stelter, then of CNN, Soon-Shiong protested that he was a “passive investor,” adding: “I’ve got my hands full and frankly, really committed to the LA Times and San Diego Union-Tribune.”

The Los Angeles Times is far better off under Soon-Shiong family ownership than it had been under years of Tribune mismanagement — mismanagement that would have turned into a rout under Alden. The Politico piece contains some interesting tidbits, but it’s hardly a takedown.

An explosive retort to a book about an alleged cover-up at the Los Angeles Times

Photo (cc) 2015 by Dan Kennedy

Earlier this month, The New York Times published a fascinating book review about a sex-and-drugs scandal at the University of Southern California — and about an alleged attempt by the top leadership at the Los Angeles Times to cover it up. I put the book, “Bad City,” by Paul Pringle, at the top of my reading list, thinking I might assign it to my media ethics students this fall.

Oh, but not so fast. Because one of the editors who handled the USC story, Matthew Doig, has written a retort on Medium. And believe me, you can tell he’s not worried about the possibility that Pringle will sue him. Among other things, Doig calls Pringle’s book “utter bullshit” and writes that “it’s disappointing that several media outlets have thus far failed to bring even a modicum of skepticism to such an absurd tale. The truth is that Pringle is a fabulist who is grossly misrepresenting the facts to support his false narrative.”

Whoa. To provide a bit of background, Pringle was part of a team of reporters who looked into the matter of Carmen Puliafito, the dean of USC’s Keck School of Medicine, who was video-recorded taking crystal meth and heroin with a group of young people and who turned a young woman into essentially his sex slave. This is pretty explosive stuff. In “Bad City,” Pringle claims that the LA Times’ leading executives, publisher and editor Davan Maharaj and managing editor Marc Duvoisin, tried to squash the story because USC was one of the paper’s most important advertisers. As NY Times reviewer Katie Benner puts it:

Pringle’s fast-paced book is a master class in investigative journalism, explaining how a reporter wrestles information and documents from reluctant sources and government officials. It is a stark look at the weakening of local news, especially at The Los Angeles Times.

I should add that this played out in 2016 and ’17, when the paper had been suffering from years of chaotic ownership. The billionaire surgeon Patrick Soon-Shiong bought the paper in 2018, bringing a measure of stability as well as some much needed financial resources.

According to Pringle, Maharaj and Duvoisin may have been forced out as a consequence of their bad behavior. Doig, the assistant managing editor for investigations, also departed. Although he’s not named in Benner’s review, he is identified in several excerpts from Pringle’s book that have been published elsewhere. Here’s what Doig has to say about how the USC story actually played out:

And on and on Doig goes, including a mind-boggling anecdote in which he claims that Pringle became enraged after Doig referred to a draft of his story as “good” rather than “great.”

So who’s telling the truth? I’m not going to touch that one, especially since I haven’t read the book. But it seems significant that Doig not only used what lawyers call “actionable” language in writing about Pringle but that he’s also landed on his feet — he’s now investigations editor at USA Today. Likewise, Duvoisin is now editor-in-chief of the San Antonio Express-News, which has done so much good work on the Uvalde massacre. Maharaj has had his own problems, but those appear to have nothing to do with his handling of the USC story.

One question that’s worth asking is what responsibility news organizations have in passing along accusations such as those leveled by Pringle in his book without doing any fact-checking of their own. Doig goes into some detail about that in his essay. Among other things, he laments the lack of fact-checking by the book’s publisher (welcome to the wonderful world of books) and writes that the NY Times should have done some reporting:

The New York Times wrote a cloying review of Pringle’s book that included a character assassination of Duvoisin and Maharaj (I wasn’t named in the review), but the reporter failed to contact Duvoisin and Maharaj for comment. When I emailed the reporter and her editor about it, the editor responded that it was a review, not a reported story, and that I should contact Pringle’s publisher.

I have to say that the NY Times editor is right. Reviews are not reported pieces, and it would be unheard-of for a reviewer to re-report the facts in a book they are reviewing.

So what’s next? Personally, I’ve crossed “Bad City” off my reading list and am not going to assign it to my students — though I may pull together some readings, including excerpts from “Bad City,” Benner’s review and, of course, Doig’s essay. I’m also interested to see whether the controversy dies down, or if instead there’s much more to come.

The New Yorker examines the controversial career of the L.A. Times’ celebrity owner

Patrick Soon-Shiong. Photo (cc) 2018 by Steve Devol.

The New Yorker has published a long profile of Patrick Soon-Shiong, the celebrity surgeon who moonlights as the problematic owner of the Los Angeles Times. Most of Stephen DeWitt’s article focuses on how Soon-Shiong became a billionaire — which appears to be based on a combination of brilliance and shady business practices. DeWitt writes:

Few figures in modern medicine have inspired as much controversy as Soon-Shiong. “He gets very enthusiastic, and sometimes he might exaggerate,” Hentz said. “He can embellish a little.” [Kate Hentz is the daughter of Lee Iacocca, whose first wife died of Type 1 diabetes and who was an important backer of Soon-Shiong’s work.] Outcomes for his diabetes treatment were disappointing, and one case ended tragically. While pursuing this therapy, he also began researching chemotherapy. At the center of his fortune is a cancer treatment that costs more than a hundred times as much as another drug, available as a generic, that is prescribed for some of the same conditions. Soon-Shiong has been repeatedly accused of financial misrepresentation, self-dealing, price gouging, and fraud. He has been sued by former investors and business partners; he has been sued by other doctors; he has been sued by his own brother, twice; he has been sued by Cher.

There’s a little bit on Soon-Shiong’s ownership of the Times and The San Diego Union-Tribune. I love this quote from Norman Pearlstine, the editor Soon-Shiong brought on board to right the ship after years of bad ownership: “He made the acquisition with very little due diligence, because he thought that it had to be easier than curing cancer. I’m not sure whether he still believes that.”

To Soon-Shiong’s credit, he has made some investments in his papers, although his interest seems to have wavered from time to time. His choice of Kevin Merida, late of ESPN and The Washington Post, as Pearlstine’s successor was a good one. Soon-Shiong also enabled Alden Global Capital to acquire Tribune Publishing earlier this year, which is unforgivable. But he saved the L.A. Times — at least for now — and that’s an important legacy.

Become a member of Media Nation for just $5 a month.

Kara Swisher to Patrick Soon-Shiong: How could you let Alden buy Tribune?

Kara Swisher. Photo (cc) 2017 by nrkbeta.

I just skimmed the transcript of Kara Swisher’s interview with Los Angeles Times owner Patrick Soon-Shiong. It gets off to a slow start — but eventually she lets him have it in the chops over his pathetic rationalizations for not stopping the hedge fund Alden Global Capital from buying Tribune Publishing earlier this year.

The short version, for those who aren’t sure what I’m talking about: Soon-Shiong, a billionaire surgeon and medical entrepreneur, owned 24% of Tribune, which publishes nine major-market daily newspapers. He could have blocked Alden by voting no or by voting to abstain, thus giving Baltimore hotel magnate Stewart Bainum more time to put a deal together — or to see if another buyer might emerge.

Instead, Soon-Shiong declined to vote at all, which allowed the deal to go through. Here’s the heart of what Swisher told him:

So essentially you’re saying I couldn’t save them. And I’m — I don’t quite know what to say. There’s some point where you do make a stand and say, you can’t do this. And especially with Alden Global Capital having a reputation it does, you might have stood up for it. You might have said no. But you felt the current owners weren’t going to really do anything with your money. As you said, they had an agenda. It seems like you have a theory of their agenda. But they weren’t going to make it better. And so any port in the storm, is that what you’re saying?

Soon-Shiong’s hedging is pretty much in line with his recent interview with Brian Stelter of CNN. But this response screams out:

Well, it’s a little more than that, right? I think there should be enough civic responsibility in Chicago, enough civic responsibility in Florida, civic responsibility wherever these — Baltimore. And obviously, as you knew, there were certain billionaires and multimillionaires. So to be fair, it should be really the responsibility of people living in their community. I live in California. So I can’t personally be responsible for Florida or Baltimore and Chicago.

Baltimore? Baltimore? Is the good doctor kidding? Bainum originally had an agreement to acquire The Baltimore Sun from Alden after Tribune was sold and then donate the Sun to a nonprofit. After he concluded that Alden was jerking him around, he tried to put together a group that would buy the entire chain. (Bainum is now launching a nonprofit news project in Baltimore.)

Look, it’s great that Soon-Shiong seemed to be committed to the Times and his other paper, The San Diego Union-Tribune. But if you look up the word “disingenuous” in the dictionary, you just might find his photo.

Previous coverage.

Become a member of Media Nation for just $5 a month!

 

Soon-Shiong ducks question on why he didn’t move to stop Alden from buying Tribune

Patrick Soon-Shiong. Photo (cc) 2019 by the World Economic Forum.

Billionaire Los Angeles Times owner Patrick Soon-Shiong evaded the question when CNN’s Brian Stelter asked him on the new “Reliable Sources” podcast why he didn’t intervene to prevent Alden Global Media from acquiring Tribune Publishing.

Here’s the exchange:

Stelter: Patrick, there are people who want to know why, with the Alden deal, you didn’t step in. This is the deal where Tribune was being taken over by the hedge fund Alden Global Capital. You are the biggest outside shareholder. You could have stepped in. There’s questions about why you decided to abstain, why you decided not to stop that from happening. Can you share with us why?

Soon-Shiong: Well, look, you know, I was a passive shareholder, and it was really important for the board to do what it has to do with regard to the rest of the Tribune holdings. I’ve got my hands full and frankly, really committed to the LA Times and San Diego Union-Tribune.

A quick recap: Alden, the worst newspaper owner on the planet, paid $633 million last month to boost its share of Tribune’s nine major-market dailies from 32% to 100%. Soon-Shiong, who held 25% of Tribune’s shares, could have just said no and given Baltimore hotel magnate and philanthropist Stewart Bainum more time to pull together his own deal.

Instead, Soon-Shiong abstained, and he did it in such a way that the deal was allowed to go through. That is, if he had formally abstained, the sale would have been stopped.

And now Alden is decimating Tribune’s newspapers, just as it has with its 100-paper MediaNews Group chain.

Previous coverage.

Become a member of Media Nation for just $5 a month.

 

Why revelations about Alden’s acquisition of Tribune should force a do-over

Photo (cc) 2012 by the Chicago Tribune

Could Alden Global Capital’s acquisition of Tribune Publishing be headed for a do-over? Julie Reynolds, who’s been reporting on the hedge fund’s evisceration of newspapers for years, has written a fascinating story for the Nieman Journalism Lab suggesting that the $633 million deal may have been illegal.

Alden, which already owned 32% of Tribune’s papers, pledged to pay $375 million in cash in order to bring its share up to 100%. But Reynolds reports that Alden didn’t actually have the cash, a fact that may have been known only to the three members of Tribune’s board who were affiliated with the hedge fund.

Become a member of Media Nation for just $5 a month

As soon as the transaction was consummated, Alden forced the papers to borrow about $300 million. That included $60 million from Alden’s other newspaper chain, MediaNews Group, at an eye-popping interest rate of 13%. As everyone predicted, Alden has gone on a cost-cutting rampage, offering buyouts throughout the chain.

Nieman Foundation curator Ann Marie Lipinski, a former editor of Tribune’s largest paper, the Chicago Tribune, tweeted, “The scale of talent leaving the Chicago Tribune is staggering.

Reynolds also reports that the full Tribune board may have been left in the dark about a private meeting that Tribune board member and Alden founder Randall Smith had with Baltimore hotel magnate Stewart Bainum last year.

You may recall that Bainum had initially worked out an agreement under which Alden would buy Tribune’s nine major-market dailies and then sell one of them, The Baltimore Sun, to Bainum, who planned to donate it to a nonprofit organization. After Bainum concluded that Alden was trying to gouge him, he tried to put together a bid for the entire chain. Most if not all of the papers would have been spun off to local buyers. But he was never able to put together a firm offer, and the board went with Alden instead. Alden is keeping all nine papers, including the Sun.

As Reynolds notes, the Tribune board spurned Bainum’s higher offer because the financing was not in place — and ignored the reality that Alden’s wasn’t in place, either. She writes:

Given the healthy profits Tribune has generated over the last several quarters, the cuts are there for just one reason: to achieve higher margins for Alden. Randall Smith will get richer while communities served by Tribune are starved of the information they need.

If Reynolds is correct in asserting that laws were broken in order to pave the way for Alden’s acquisition of Tribune, then the punishment ought to be more than a fine and a slap on the wrist. The sale should be voided and the Tribune board should be forced to vote again.

Maybe this time Patrick Soon-Shiong, the billionaire owner of the Los Angeles Times, can be persuaded to stop Alden. As a 25% owner of Tribune before the sale, Soon-Shiong could have said no. Instead, he abstained, and did it in a manner that allowed the transaction to go through.

I’m also lighting up the Bat Signal again for Jeff Bezos.

Previous coverage.

And so the cutting begins

Alden Global Capital is wasting no time in taking a chainsaw to its newly acquired newspapers. NPR media reporter David Folkenflik tweeted a thread that contains some horrifying details about what the hedge fund has in store for Tribune Publishing:

How about that? A $60 million loan with a 13% interest rate that Alden will pay to itself.

The cuts, by the way, will come on top of massive downsizing that took place in 2020, when Alden was a mere minority shareholder. Tribune’s Chicago Tribune reports:

Last  year, Tribune Publishing employment fell by 30%, dropping from 4,114  employees at the end of 2019 to 2,865 employees at the end of 2020,  according to the company’s annual reports. The company had a total of  896 newsroom employees across its eight markets entering this year.

Finally, the New York Post’s Keith Kelly writes that Los Angeles Times owner Patrick Soon-Shiong, who was in a better position than anyone to stop the sale of Tribune to Alden, is “taking a lot of heat” for not voting against it — or at least for not abstaining in a way that would have stopped the deal.

Kelly quotes an unnamed source who calls Soon-Shiong “second most despised man in newspapers today behind Heath Freeman,” Alden’s president. Nice quote. I wonder who said it?

Please become a member of Media Nation today.

Alden’s victory marks a dark day for newspapers — but it could lead to a brighter future

The Chicago Tribune Tower — no longer the home of its namesake newspaper, which is now falling into the hands of our worst newspaper owner. Photo (cc) 2013 by R Boed.

It was, in a sense, the perfect ending to the disastrous $630 million sale of Tribune Publishing to the hedge fund Alden Global Capital. After Tribune’s board voted earlier today to turn over its nine major-market dailies to the worst newspaper owner in the country, it wasn’t entirely clear that the vote was valid. And I’m guessing that the Newspaper Guild, which has been fighting the sale, will file a challenge. Elahe Izadi and Sarah Ellison of The Washington Post explain:

But participants also remained uncertain well into Friday afternoon about the potential impact of Patrick Soon-Shiong’s surprise announcement, made via a spokeswoman, that he “abstained” from the vote. The California biotech billionaire owns the Los Angeles Times — which is unaffected by the sale — and about one-quarter of Tribune shares, meaning he had enough votes to torpedo the takeover.

According to Tribune Publishing proxy filed on April 20 with the Securities and Exchange Commission, an “abstain” vote would be counted as “against” the merger. Yet it appears that Soon-Shiong ultimately did not cast his ballots in a way that would have stopped the Alden sale. Unnamed Tribune Publishing officials told the Chicago Tribune that the proxy ballots registered to Soon-Shiong were submitted without the “abstain” box checked, and that his votes were counted as “yes” for the merger.

Had he not voted at all, his silence would have been recorded as a vote “against” the merger. But ballot submitted without any boxes checked at all were understood as endorsing the board’s recommendation to approve the merger.

David Folkenflik of NPR has a comprehensive account of what went down today and what it means for the future.

There are two villains here in the looming destruction of some of our most important newspapers, including the Chicago Tribune, The Baltimore Sun and, closer to home, the Hartford Courant. One is Soon-Shiong. I realize he has his hands full with the LA Times, and I’m glad that he appears to be recommitted to that paper after rumors circulated earlier this year that he was looking to sell. But all he had to do today was vote “no,” buying more time for another bidder to emerge. Instead, Soon-Shiong will walk away with $150 million.

Become a member of Media Nation for just $5 a month

The other villain is a Swiss billionaire named Hansjörg Wyss. At one point, Baltimore hotel magnate Stewart Bainum put together a $680 million bid that was largely aimed at breaking up the chain and finding local buyers. Wyss wanted the Chicago Tribune — but reportedly decided against it once he learned that its finances were in worse shape than he’d been led to believe. He also reportedly lost interest after his advisers convinced him that, no, the Trib couldn’t be transformed into a national paper in league with The New York Times or the Post. With a net worth of $6.4 billion, though, Wyss easily could have sucked it up rather than walking away.

I’m not going to single out mega-billionaire Jeff Bezos as a villain, even though I recently argued that he should add Tribune to his ownership of the Post. It would have been nice, but there was never a hint that he had any interest.

And here’s a really terrible wrinkle. Earlier this year, Alden had agreed to buy Tribune and then sell The Baltimore Sun to Bainum, who in turn planned to donate it to a nonprofit. Bainum decided to try to buy the entire chain after concluding that Alden was trying to chisel him on the terms of the deal. Now Alden will keep all nine Tribune metros plus some pretty vital smaller papers, such as the Capital Gazette of Annapolis, Maryland.

Alden will soon control two newspaper chains. In addition to Tribune, Alden owns MediaNews Group (also known as Digital First Media), whose 100 or so papers include The Denver Post, the Orange County Register in Southern California and, in Massachusetts, The Sun of Lowell, the Sentinel & Enterprise of Fitchburg and the Boston Herald. Its papers are mere shadows of their former selves, barely able to cover the communities they purportedly serve.

If there’s a bright spot — and there is — it’s that entrepreneurial journalists move in where there is market failure. Former Denver Post journalists are now operating The Colorado Sun, a digital operation that recently acquired a chain of 24 regional newspapers around Denver. In Northern California, two former Alden journalists are now running a news co-op called The Mendocino Voice. And in Baltimore, Bainum says he’s going to investigate launching a nonprofit alternative to the Sun.

This may be the darkest day in the history of American newspapers. My hope is that, five years from now, we’ll look back and see that something good came out of it.

Previous coverage.

Why the Kevin Merida announcement is good news for the Los Angeles Times

Patrick Soon-Shiong may be the most important newspaper owner in the country after Jeff Bezos of The Washington Post. So Monday’s announcement that the next executive editor of the Los Angeles Times will be Kevin Merida of ESPN was significant as much for what it says about Soon-Shiong’s commitment to the paper as it does about Merida’s own considerable abilities. Given the Times’ size, influence and unrealized potential, its fate is crucial to the journalistic ecosystem.

It was just a few months ago that Lukas I. Alpert of The Wall Street Journal dropped a bombshell: Soon-Shiong, a billionaire surgeon who bought the Times in 2018, was looking to get out. Soon-Shiong denied it, but actions speak louder than words — and now he has acted. The fact that he could recruit someone who is regarded as the best free-agent editor out there suggests he was able to reassure Merida about stability in the owner’s suite. The Times itself, in a story by Meg James, puts it this way:

His hiring reaffirms the Soon-Shiong family’s commitment to the paper they purchased, along with the San Diego Union-Tribune, for $500 million from Chicago-based Tribune Publishing in June 2018. The Soon-Shiong family has since invested hundreds of millions of dollars more to replenish the newsroom’s withered ranks, built a campus in El Segundo, upgraded the paper’s technology and covered financial losses that deepened last year when coronavirus shutdowns prompted a steep drop in advertising revenue.

Key to all this may be Soon-Shiong’s daughter, Nika Soon-Shiong, who, according to Katie Robertson’s report in The New York Times, “has become an active part of the newspaper’s management team.” In that regard, she may play a similar role to that of Linda Pizzuti Henry, who co-owns The Boston Globe along with her husband, John Henry. Linda Henry, named CEO of Boston Globe Media last year, is heavily involved in the day-to-day operations of the Globe, thus serving as a guarantor of sorts that Henry won’t sell.

Merida will be the LA Times’ second Black editor, which is also significant because of the paper’s diversity issues under former executive editor Norman Pearlstine. It also raises the question of why The Washington Post didn’t push harder to hire Merida as a replacement for Marty Baron, who retired recently. Merida was a highly regarded top editor at the Post before leaving for ESPN.

One possible explanation is that Merida is just two years younger than Baron. As Tom Jones of Poynter writes, “Maybe the Post is looking for a long-term editor — someone who could take over for 15 or so years, and, perhaps, Merida’s age (64) didn’t align with that plan.”

The Soon-Shiong ownership of the LA Times has been a mixed bag thus far. The newsroom has been bulked up in the hopes that the paper could emerge as a national force. But that hasn’t happened, and its digital subscription numbers have proved disappointing as well. It could be that there’s just no room for a fourth national newspaper along with The New York Times, the Post and the Journal. But the LA Times could dominate the West, serving as a much-needed counterbalance to the East Coast media.

All in all, the appointment of Merida was very good news, not just because he’s a first-rate choice but because it signals that Soon-Shiong is committed to the LA Times’ long-range future.

Correction. The original post described Merida as the LA Times first Black editor. In fact, he is the second; New York Times executive editor Dean Baquet served in that role from 2005 to ’06.

Become a member of Media Nation for just $5 a month.

 

Rich guys band together in a final push to stop Alden from buying Tribune Publishing

Photo (cc) 2009 by Thomas Hawk

Less than a week ago, efforts to keep Tribune Publishing out of the clutches of the hedge fund Alden Global Capital appeared to be faltering.

The hotelier Stewart Bainum, who originally got involved so that he could acquire Tribune’s Baltimore Sun and its affiliated papers in order to turn them over to a nonprofit, was seeking to outbid Alden’s $630 million offer. But according to Rick Edmonds of Poynter, the Alden deal was a simple cash offer that could be consummated quickly, which meant that Bainum was likely to lose out.

On Saturday, though, Marc Tracy of The New York Times reported that a Swiss billionaire named Hansjörg Wyss had teamed up with Bainum, with each man pledging to put up $100 million apiece.

Then, on Monday, we learned from Lukas I. Alpert of The Wall Street Journal that yet another wealthy patron, the technology investor Mason Slaine, had also agreed to put up $100 million. Slaine, who already owns a small chunk of Tribune, wants to acquire Tribune’s two Florida papers, the Orlando Sentinel and the South Florida Sun Sentinel of Fort Lauderdale.

Become a member of Media Nation today.

Also over the weekend, Gary Lutin, a Manhattan investment banker, revealed that he wants to buy The Morning Call of Allentown, Pennsylvania, telling the paper: “There are many encouraging examples of both large global news organizations as well as small community news organizations that survive and eventually prosper based on improving the quality of the news service.” Lutin’s interest is not dependent on the Bainum group’s success — he says he’ll attempt to cut a deal with whoever the eventual buyer turns out to be.

Meanwhile, Patrick Soon-Shiong, the possibly reluctant owner of the Los Angeles Times and The San Diego Union-Tribune, remains in a position to veto any deal with Alden, though Edmonds has speculated that Soon-Shiong would be happy to cash in.

“Hope is what Tribune staffers are feeling,” writes CNN media reporter Kerry Flynn, “as it looks more and more feasible that local ownership could be in their futures — instead of Alden.”

The Tribune saga has been years in the making as the chain — which currently consists of nine papers — has lurched from one ownership melodrama to another. There was the epic era of Sam Zell, the foul-mouthed Chicago real-estate magnate who hated newspapers, documented memorably by the late David Carr. There was the rudderless period when the company was known as tronc.

Now the struggle over Tribune may represent the last best chance to stop Alden from destroying what’s left of some of the most important papers in the country — among them the Chicago Tribune, New York’s Daily News and, closer to home, the Hartford Courant.

“Maybe I’m naive,” Wyss told the Times, “but the combination of giving enough money to a professional staff to do the right things and putting quite a bit of money into digital will eventually make it a very profitable newspaper.”

Wyss isn’t being naive at all. Not only have The New York Times and The Washington Post shown it can be done, but regional papers such as The Boston Globe, the Star Tribune of Minneapolis and The Seattle Times are all doing well under local ownership committed to the transition from print to digital and from a mostly advertising-based model to one mainly supported by reader revenue.

Journalism is too important to be left to the whims of unbridled capitalism. We shouldn’t be reduced to having to root for one group of rich guys over another. But that’s where we’re at. In that spirit, may Bainum, Wyss, Slaine and Lutin win.

Previous coverage.