(AP) — Shareholders of Tribune Publishing, one of the country's largest newspaper chains, voted Friday on a takeover bid by hedge fund Alden Global Capital. In a statement, Alden appeared to say the deal was approved, an assertion questioned by the union representing Tribune journalists.
Alden, which already owned nearly one-third of Tribune, stands to take full control of the Chicago Tribune, Baltimore Sun and other Tribune papers in a deal worth roughly $630 million. Through its Digital First Media chain, Alden also owns the Boston Herald, Denver Post and San Jose Mercury News.
Union officials cast doubt on the outcome because Patrick Soon-Shiong, the owner of the Los Angeles Times and Tribune's No. 2 shareholder, abstained from the vote.
They cited Tribune's proxy statement of April 20, which states that approval of the deal required the votes of at least two-thirds of shares not owned by Alden, and that an "abstain" vote counted the same as an "against" vote. Soon-Shiong, in a statement issued through a representative, said he "abstained from voting" and that he viewed Tribune as a "passive investment.”
"We're digging into this question right now," said Jon Schleuss, president of the NewsGuild journalists union.
The Chicago Tribune, citing unnamed Tribune officials, reported that Soon-Shiong's ballots were submitted without the "abstain" box checked, and so were counted as a "yes" vote on the Alden takeover, which was in accordance with the instructions on the ballot.
Representatives for Soon-Shiong, Alden, Tribune and the special committee of Tribune's board did not immediately reply to questions about the vote count.
The Alden bid would be the latest major acquisition of a newspaper company by an investment firm. The collapse of print advertising as readers migrated to digital publications has rocked the traditional newspaper business. Publishers have shut down more than 2,000 papers over the past 15 years and half of newsroom jobs have disappeared. Investment firm owners are often criticized for valuing profits over the mission of local journalism, and Alden is no exception.
The deal had drawn opposition from many of the company's journalists at papers in an unusual spate of employee activism.
Alden became Tribune's largest shareholder in 2019. The union representing Tribune's journalists says the hedge fund's cost cuts have already led to shrinking newsrooms and closed offices.
"The purchase of Tribune reaffirms our commitment to the newspaper industry and our focus on getting publications to a place where they can operate sustainably over the long term," said Heath Freeman, president of Alden, in a statement.
A 2020 report from the University of North Carolina's journalism school said the combination of Alden and Tribune would be the country's second-largest newspaper publisher by circulation, behind Gannett.
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