Tribune shareholders approve takeover by Alden Global

Soon-Shiong abstained from the vote, a spokeswoman said Friday.

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.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Shareholders of Tribune Publishing, one of the country’s largest newspaper chains, will vote Friday on whether to be acquired by a hedge fund that already owns one-third of the company and favors aggressive cost-cutting to boost profits.

The $630 million bid by that hedge fund, Alden Global Capital, has drawn opposition from Tribune journalists at papers including the Chicago Tribune, the Baltimore Sun, the Hartford Courant and the New York Daily News. For more than a year, they have been trying to fend off Alden, whose reputation for squeezing out bigger profit margins is notable even in a shrinking industry characterized by cost cuts and aggressive layoffs.

In an unusual spate of employee activism, the journalists have set up rallies, tried to find local buyers and begged for a rescue in their own newspapers. They have rooted for a higher bid from hotel mogul Stewart Bainum in the belief that it would be better for local journalism and lobbied Patrick Soon-Shiong, the owner of the Los Angeles Times and Tribune’s No. 2 shareholder, to vote no and stop the deal. Soon-Shiong has said he hasn’t made a decision yet. A spokeswoman for the billionaire this week declined an interview request.