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Meet the Hedge Fund Boss Who Just Bought Tribune’s Newspapers
WSJ ^ | 24 May 2021 | Lukas I. Alpert

Posted on 05/25/2021 7:10:56 AM PDT by DUMBGRUNT

In an interview last year, Mr. Freeman argued that the austere cuts enacted at his newspapers reflected a more realistic understanding of the industry’s direction and better positioned Alden-owned publishers for the pandemic’s downswing. “We were prepared for a real step down in terms of a recession because we were honest about what was needed in the future,” he said. “Numbers don’t lie.”

The newspaper industry’s numbers looked bleak even before the pandemic. Annual advertising revenue dropped 70%, or $34 billion, between 2005 and 2018, according to estimates by the Pew Research Center. More than 1,800 newspapers closed between 2004 and 2018, according to research by the University of North Carolina.

Between 2008 and 2019, the newspaper industry shed 51% of its newsroom jobs, ... Alden’s chain of papers cut staff by 76% at its 11 unionized papers between 2012 and last year

“That would be the industrial logic behind the deal,” ... “Alden’s strategy has always been to take the money out of these businesses.”

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Chit/Chat; History
KEYWORDS: aldenglobalcapital; angelogordonandco; annmarielipinski; baltimore; baltimoresun; bostonherald; california; chicago; chicagotribune; colorado; denver; denverpost; dinosaurmedia; gannett; gregorypratt; hansjorgwyss; harvard; heathfreeman; hedgefund; illinois; jpmorganchase; losangeles; losangelesdailynews; losangelestimes; lukasialpert; maryland; mercurynews; michaelferro; newyork; newyorkcity; newyorkdailynews; niemanfoundation; oaktreecapital; patricksoonshiong; schadenfreude; stewartbainumjr; switzerland; tribune; tribunepublishing; wallstreetjournal; wyoming
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Schadenfreude, get some here.

The old pump and dump was illegal; now new and improved.

Pump the Tribune overflowing with debt, then dump the dead shell. All for a modest service fee.

"But Alden has imposed draconian staff cuts that decimated the Denver Post and other once-proud newspapers that have been vital to their communities and to American democracy."

Too bad so sad.

1 posted on 05/25/2021 7:10:56 AM PDT by DUMBGRUNT
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To: DUMBGRUNT

Schadenfreude, here:

Chicago Tribune staff fear ‘avaricious destruction’ by hedge fund owners

https://www.theguardian.com/media/2020/jan/21/chicago-tribune-staff-hedge-fund-owners-alden


2 posted on 05/25/2021 7:12:12 AM PDT by DUMBGRUNT (("The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: DUMBGRUNT

The Denver Post is “vital?”

A few weeks back, my wife and I bought the local city Sunday newspaper for the first time in several years. We never read the Sunday paper, but we used to get it for the sale inserts.

We paid several dollars for it and it had no inserts. We checked the others in the stack and none had any.

Even stores now realize no one buys the newspaper.


3 posted on 05/25/2021 7:15:19 AM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: DUMBGRUNT

The leftist Lunatics at the Tribune are losing their minds! They will no longer get paid to spill their communist slanted “news” under the cover of The Chicago Tribune on a daily basis.


4 posted on 05/25/2021 7:17:32 AM PDT by EC Washington
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To: DUMBGRUNT; All

Full TXT:
https://www.wsj.com/articles/meet-the-hedge-fund-boss-who-just-bought-tribunes-newspapers-11621890733


5 posted on 05/25/2021 7:21:28 AM PDT by DUMBGRUNT (("The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: EC Washington

Is the new plan to carve out a niche as a left wing voice? s/


6 posted on 05/25/2021 7:21:34 AM PDT by School of Rational Thought
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To: DUMBGRUNT

There is little, if any growth potential in newspapers, in my opinion. Except for certain small markets, the entire industry seems antiquated and to be quickly shriveling.
I still miss my physical paper, but have gotten used to coming to the internet, where a bumper crop of info can be harvested at any moment. Physical papers have shrunken dramatically, skimpy, non-serious products of less money being invested in them. This guy, Freeman, may see it differently. Well, he is the millionaire, while I’m not.


7 posted on 05/25/2021 7:22:07 AM PDT by lee martell
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To: EC Washington

—”The leftist Lunatics at the Tribune are losing their minds! “

My bunker is only 30 short klicks west of Chiraq and once a long-term Trib subscriber; they lost their minds long ago.

When Sam Zell extracted some blood, they lost their heads.

This event will make the Zell takeover look like a playground tiff.


8 posted on 05/25/2021 7:27:46 AM PDT by DUMBGRUNT (("The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: DUMBGRUNT
once-proud newspapers that have been vital to their communities and to American democracy.

What a boat-load of garbage.

These newspapers have been spewing leftist talking points for decades.
9 posted on 05/25/2021 7:41:41 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: DUMBGRUNT

Hard for us nonsubscribers to WSJ to tell what it says.


10 posted on 05/25/2021 7:42:03 AM PDT by bigbob
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To: ConservativeMind

It’s possible that the inserts were simply never inserted. This happens all the time. The inserter may malfunction, the person running it may have been slow to refill the hopper, or the driver may have neglected to leave the necessary bundles. Or someone at the retail outlet may have swiped the inserts for the coupons. You never know.


11 posted on 05/25/2021 7:53:41 AM PDT by Blurb2350 (posted from my 1500-watt blow dryer)
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To: lee martell

—”I still miss my physical paper,”

Almost forever my employer paid for my subscriptions, now retired, I put out only for the WSJ $$$ because I enjoy standing reading the paper with coffee. (I used a standing desk for years.)

—”There is little, if any growth potential in newspapers, in my opinion.”

Freeman sees the underlying assets that he can use as collateral or sell outright. Either way converts them to cash in HIS bank account.

This is what Freeman sees:
https://tribunetower.com/?gclid=Cj0KCQjwwLKFBhDPARIsAPzPi-KFvjJDxW8rI7l4HuZ17Qaa-SKijK1DpPlHEUaWFI2pF9zlxEFJetIaAoZ2EALw_wcB

He missed this one but there are more to be had.

Yes, the Trib Tower went condo $$$
And it is a thing of beauty.


12 posted on 05/25/2021 7:59:06 AM PDT by DUMBGRUNT (("The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: bigbob

—”for us nonsubscribers to WSJ...”

Not to worry there Bigbob!
Pls see #5


13 posted on 05/25/2021 8:01:36 AM PDT by DUMBGRUNT (("The enemy has overrun us. We are blowing up everything. Vive la France!"Dien Bien Phu last message)
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To: DUMBGRUNT

Just maybe, if newspapers printed objective news instead of jamming Marxism down people’s throats, people would read them. When people read them, companies buy advertising, and newspapers are profitable.


14 posted on 05/25/2021 8:07:22 AM PDT by ConservativeInPA (“When injustice becomes law, resistance becomes duty.” ― Thomas Jefferson)
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To: ConservativeInPA

bias=layoffs


15 posted on 05/25/2021 8:17:25 AM PDT by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. P144:1)
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To: EC Washington
Very sad about The Chicago Tribune. As you may know, the founder hired world class journalists and reporters. Mike Royko was one of my favorites as a kid.

He also put up a world class military museum in one of the Chicago suburbs. I'm trying to remember the name of the town, but it was clear the owner-founder loved America and had a deep respect for what it took to build and preserve this country.

Sadly, the same rot is creeping in to our hometown newspaper, the Tribune-Review ever since the founder Richard Mellon Scaife passed.

16 posted on 05/25/2021 8:56:35 AM PDT by Vigilanteman (The politicized state destroys aspects of civil society, human kindness and private charity.)
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To: AdmSmith; AnonymousConservative; Arthur Wildfire! March; Berosus; Bockscar; cardinal4; ColdOne; ...
Oh gosh, what will this mean for journalistic ethics?!?

17 posted on 05/25/2021 8:58:08 AM PDT by SunkenCiv (Imagine an imaginary menagerie manager imagining managing an imaginary menagerie.)
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To: DUMBGRUNT
Between 2008 and 2019, the newspaper industry shed 51% of its newsroom jobs, ... Alden’s chain of papers cut staff by 76% at its 11 unionized papers between 2012 and last year

Worse than I thought...

18 posted on 05/25/2021 9:00:35 AM PDT by GOPJ (Liz Cheney: There was NO VOTER FRAUD Winston. YOU agree Winston? How many fingers Winston...?)
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To: ConservativeInPA
"Just maybe, if newspapers printed objective news instead of jamming Marxism down people’s throats, people would read them. When people read them, companies buy advertising, and newspapers are profitable."

Couldn't agree more! When your "product" is sure to alienate 50%+ of it's potential consumers, you have an uphill climb if you're trying to be profitable. You better have either a monopoly over a huge market, or you should leave running a business to a business-person. These newspaper conglomerates think their mission is to promote one ideology, while eviscerating any alternates. If I were a shareholder, I'd sue the board and management for failing in their fiduciary responsibilities to do what is best for the shareholders.

19 posted on 05/25/2021 9:19:59 AM PDT by Be Free (When guns are outlawed, only outlaws will have guns.)
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To: DUMBGRUNT; All
I feel compelled to reply to this thread as I am a Freeper who is also a Tribune employee. I work in the manufacturing and production side of the operation where most people tend towards conservative. I have little interaction with the news staff - besides, they've been working remotely since March 2020.

I know many on this forum have no love for the newspaper industry and frankly, I do not blame you. Because the writing is so biased, I can barely read the product I produce. The last year has been nothing but endless stories about COVID, racism, white supremacy, and telling their own "big lie" about what they call the "big lie": believing the 2020 election was stolen. I tell my wife that if I had an ounce of integrity, I would resign tomorrow and tell the publisher why. But, I've been there twenty-two years and I rationalize my employment by telling myself that as a printing professional, it's my job to produce a good-looking product. My benefits are outstanding and I have great flexibility. Besides - in all honesty, I need the money.

I knew this day was coming years ago: I have been attending school in the pursuit of an accounting degree and I am more than halfway there. Since Alden announced their intent to purchase Tribune, I have heard the whinging and whining from the newsroom and their union representation. These self-important "journalists" believe their "mission" and "craft" is somehow not subject to the law of economics and finance; it's the same song they sang when Sam Zell took over. They forget that advertising revenue has plummeted since 2005, and that revenue was what allowed them their "mission". As far as I am concerned, they can "learn to code."

My future with Tribune is tenuous; however, I cannot and will not worry about it: I will continue to strive to be the best at what I do and leave the rest in God's hands.

20 posted on 05/25/2021 10:07:28 AM PDT by Ten Beers Gone (I don't consider the American left to be American...)
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