We were in collective revolt, Lillian Reed, a Sun reporter who helped organize the campaign, told me. NY Daily News owner Alden sues Lee after publisher rejects takeover bid Alden Global Capital, the Hedge Fund Killing Newspapers - The Atlantic Research shows that when local newspapers disappear or are dramatically gutted, communities tend to see lower voter turnout, increased polarization, a general erosion of civic engagement and an environment in which misinformation and conspiracy theories can spread more easily. It was all about the next quarters profit margins, says Matt DeRienzo, who worked as a publisher for Aldens Connecticut newspapers before finally resigning. But most of them also had a stake in the communities their papers served, which meant that, if nothing else, their egos were wrapped up in putting out a respectable product. With its acquisition of Tribune Publishing earlier this year, Alden now controls more than 200 newspapers, including some of the countrys most famous and influential: the Chicago Tribune, The Baltimore Sun, the New York Daily News. After a powerful Illinois state legislator resigned amid bribery allegations, the paper didnt have a reporter in Springfield to follow the resulting scandal. Who is investor Randall Smith and why is he buying up newspaper companies, deep losses to Alden funds overall values, Denver Post newsroom workers invoke Thirst Amendment to raise awareness about conditions under Alden, Pittsburgh newspaper workers are making history, The NewsGuild urges public pension funds to divest from Cerberus, NewsGuild to Lee Shareholders: Reject Aldens Vote No Campaign. Alden Global Capital had recently purchased a nearly one-third stake in the Suns parent company, Tribune Publishing, and the firm was signaling that it would soon come for the rest. Many in the journalism industry, watching lawsuits play out in Australia and Europe, have held out hope in recent years that Google and Facebook will be compelled to share their advertising revenue with the local outlets whose content populates their platforms. [4], In 2019, Alden attempted, but failed at, a hostile takeover of Gannett. The specific shareholder rights plan adopted by the Lee board forbids Alden from purchasing more than 10% of the company, and will be in force for one year. (PDF) Extractive Imperialism in the Americas | henry veltmeyer qhhsubiquity.com Informacin detallada del sitio web y la empresa Convinced that the Sun wont be able to provide the kind of coverage the city needs, he has set out to build a new publication of record from the ground up. Much of the Knight family's once-grand newspaper empire was ultimately acquired by Alden Global Capital, while the family foundation invested in Alden funds. Many of the operators were looking at the newspaper business as a local advertising business, he said, and we didnt believe that was the right way to look at it. In the for-profit news arena, Knight is spurring the digital transformation of local newsrooms through the Knight-Lenfest Newsroom Initiative, Sherry said. Interestingly, Smiths foundation didnt do well with its Alden investments in 2016. When lawmakers pressed for details last year on who funds Alden, the company replied that there may be certain legal entities and organizational structures formed outside of the United States.. Hedge fund Alden in hunt for another big newspaper chain The practical effect of the death of local journalism is that you get what weve had, he told me, which is a halcyon time for corruption and mismanagement and basically misrule.. Bainum told me hed come to appreciate local journalism in the 1970s while serving in the Maryland state legislature. So I was more than a little shocked to learn that, according to its tax filings, Knight had invested $13 million with Aldens Distressed Opportunities Fund by 2010 and kept investing through 2014. Next up: Chicago, Baltimore, and the New York Daily News. Baltimore is an underdog town, Liz Bowie, a Sun reporter who was at the meeting, told me. Lee blocks Alden Global Capital move for more board control - STLPR Other large shareholders include Californian asset manager Capital Group and UK fund manager Jupiter Asset Management. When The New York Times profiles him in 1991, it notes that he excels at profiting from other peoples misery and quotes a parade of disgruntled clients and partners. This is the story weve been telling for decades about the dying local-news industry, and its not without truth. Located in the same Manhattan office building as Alden, it funds stem-cell research, health-related charities, arts and culture and Duke University, alma mater of Smiths protg Heath Freeman. MediaNews Group came out of bankruptcy in March 2010 under the majority ownership of its lenders. Alden Global Capital moves to buy Lee Enterprises, owner of the St The final product, completed in 1925, was an architectural spectacle unlike anything the city had seen beforeromance in stone and steel, as one writer described it. Maybe this obscure hedge fund had a plan. The new owners had announced a round of buyouts, some beloved staffers were leaving, and those who remained were worried about the future. "Local newspaper brands and operations are the engines that power trusted local news in communities across the United States," Heath Freeman, president of Alden Global Capital, said in a . Who Profits From Alden Global Capital? hide caption. And that has consequences for democracy, as journalist McKay Coppins writes in The Atlantic. In truth, Freeman didnt seem particularly interested in defending Aldens reputation. For Smith, the Palm Beach conservative and Trump ally, sticking it to the mainstream media might actually be a perk of Aldens strategy. Alden, which has built a reputation as one of the newspaper industry's most aggressive cost-cutters, became Tribune Publishing's largest shareholder in November 2019 and owns a 31.3% stake. Today, we know that Knight, CalPERS and others no longer invest with Alden. But it turned out that Smith had so many doorsteps16 mansions in Palm Beach alone, as of a few years ago, some of them behind gatesthat the plan proved impractical. She was writing about Aldens growing newspaper empire, and wanted to know what it was like to be the last news reporter in town. When plans for the building were announced in 1922, Colonel Robert R. McCormick, the longtime owner of the Chicago Tribune, said he wanted to erect the worlds most beautiful office building for his beloved newspaper. Iowa-based Lee Enterprises asks investors to help fight off hedge fund Alden Global Capital. The Hedge Fund Vampire That Bleeds Newspapers Dry Now Has the Alden is in the business of making money, not journalism. Alden Global Looks to Buy Newspaper Publisher Lee Enterprises Hedge fund Alden Global Capital is attempting to acquire Davenport-based Lee Enterprises, one of the country's largest newspaper chains, in all the markings of a hostile takeover. Smith. The shows premise pits two couples against each other for the chance to win a home. One early article, in the trade publication Poynter, suggested that Aldens interest in the local-news business could be seen as flattering and quoted the owner of The Denver Post as saying he had enormous respect for the firm. At the Suns peak, it employed more than 400 journalists, with reporters in London and Tokyo and Jerusalem. Freeman, his 41-year-old protg and the president of the firm, would be unrecognizable in most of the newsrooms he owns. But even for a group of journalists, it was tough to keep the publics attention. Hedge fund Alden Global is buying newspaper chain Tribune Publishing Alden Capital's gutting of the Denver Post is the most discussed example of this, but there are many others. The details of how Smith got to know him are opaque, but the resulting loyalty was evident. Others pointed to Bainums financing partner, who pulled out of the deal at the 11th hour. [21], Under the acquisition plan, MediaNews Group debt fell to $165 million from about $930 million. Randy claims no editorial role in the Press, and his investment in the projectwhich has little chance of producing the kind of return hes accustomed tocould be chalked up to brotherly loyalty. One acquaintance tells The Village Voice that hes the kind of guy who divests himself every couple of years to avoid ending up on lists of the worlds richest people. Freeman was more animated when he turned to the prospect of extracting money from Big Tech. and our desire to support local newspapers over the long term." Alden said it wants to work Lee's board of . No response came back. The 5 global Trends in Journalism: 1 We've moved from a world where media organizations were gatekeepers to a world where media still creates the news agenda, but platform companies control access to audiences 2 this move to digital media generally does not generate filter bubbles Instead automated Serendipity + incidental exposure drive people . The Alden Global Capital . Around this time, Randy becomes preoccupied with privacy. Denver Post reporters vs 'vulture capitalist' hedge fund Alden - CNBC Misinformation proliferates. Have you heard of the hedge fund Alden Global Capital? [4], Alden purchased a 5.9-percent stake in Lee Enterprises in January 2020. Next year, Bainum will launch The Baltimore Banner, an all-digital, nonprofit news outlet. They want to know who exactly profits when we learn, as Harvard Nieman Labs Ken Doctor recently reported, that the firm netted $160 million last year from its Digital First Media newspapers. And everyone knows its going to run dry.. [4][13], In November 2021, Alden made an offer to Lee to purchase the company in its entirety for roughly $141 million. One known investor, however, is the Randall and Barbara Smith Foundation, named for Alden founder Smith and his wife. Hedge fund Alden's bid for owner of Virginian-Pilot, Daily Press As a privately held hedge fund, Alden doesnt have to reveal much to the public. After college he worked at Hudson Studio, Art Foundry in Niverville, NY . These include the Chicago Tribune, the New York Daily News, and The Baltimore Sun. Alden's holdings already spanned the country, including the . Baltimore has always had its problems, he told me. Alden Global Capital, the hedge fund that owns The Virginian-Pilot and Daily Press in Virginia, has proposed purchasing Lee Enterprises, the Iowa-based owner of the Richmond Times-Dispatch and most other major Virginia newspapers, for approximately $144 million, Alden announced Monday. A Secretive Hedge Fund Is Gutting Newsrooms. Hedge fund reaches $630m deal to buy remaining Tribune Publishing , From the February 1905 issue: The confessions of a newspaper woman, The papers union hired a PR firm to launch a public-awareness campaign under the banner Save Our Sun and published a letter calling on the Tribune board to sell the paper to local owners. But within weeks, Bainum said, Alden tried to tack on a five-year licensing deal that would have cost him tens of millions more.