Shareholders for Tribune Publishing voted to approve a roughly $630 million takeover of its newspaper company by Alden Global Capital, a hedge fund known for cutting journalists at local papers to maximize profits.
Why it matters: A takeover almost certainly means job cuts at many of America’s most storied local papers, including The Chicago Tribune and The New York Daily News.
Between the lines: Journalists have been pleading with their communities to find a buyer to save the papers.
- A last-minute bid from a hotel magnate almost derailed the Alden deal, but ultimately fell apart when the suitor couldn’t pull together enough cash to compete with Alden.
- Unions representing journalists at many of Tribune's newspapers issued a statement on Friday expressing frustration that the shareholders had "voted to put profit and greed over local news in our country."
The big picture: Local newspapers have struggled to find their footing in the internet era, leading to dramatic consolidation. Hedge firms and private equity companies are increasingly consolidating local titles to cut costs for profit.