Last week the Chicago Sun-Times reported that an investment group led by former Chicago alderman Edwin Eisendrath has acquired the newspaper and the Chicago Reader. This ends a bid by Tronc, formerly Tribune Publishing, who tried to acquire the Sun-Times’ parent company, Wrapports Holdings in May. Tronc owns Chicago Tribune, the Sun-Times’ long-time rival, creating anti-trust concerns by the Department of Justice that Tronc would own both major newspapers in one of the few cities that still maintains two newspapers.

As a condition of the DOJ, the Sun-Times ran a full-page ad in May seeking another buyer. If another buyer was not found, Tronc would be allowed to purchase Wrapports Holdings with the deal closing as early as June 1. Another buyer did, indeed, come forward.

“A great group has come together and made sure that a genuine voice with honest and good reporting that connects with working men and women thrives,” said Eisendrath. “The Sun-Times has been an important part of Chicago for our whole lives. We are inspired by the writing and reporting, and a group of civic-minded leaders wanted to save that.”

Eisendrath leads the investment group that acquired the Sun-Times. He is joined by corporate restructuring expert William Brandt, the Chicago Federal of Labor, other local labor unions and about a half-dozen other individuals, said the Sun-Times. According to Columbia Journalism Review, other investors include broadcast journalist Linda Yu, attorneys Skip Herman and Len Goodman, John Eisendrath and developer Elzie Higginbottom.

Terms of the sale were not disclosed, but the purchase price is said to be $1, but the investment group has secured more than $11.2 million in operating capital to keep the company running.

“Our investors include more than half-a-million hardworking people around Chicago, and you can bet we’ll be talking with a voice that resonates with the working class. We’re going to organize around that to raise circulation,” said Eisendrath.

Brandt also commented on the sale.

“I think it’s a worthwhile challenge. It’s a money-losing venture, but this is one of those things where you take a gulp and you do it for the good of the city,” Brandt said. “Chicago needs two newspapers.”

While Tronc did not win its bid to purchase the Sun-Times, it will continue its $25 million annual contract to print and distribute the Chicago Sun-Times.

Insider Take:

As a former Midwesterner with family still in Chicago, I remember the rivalry between the Chicago Tribune and the Sun-Times from the time I started reading. It was almost as strong as the rivalry between the Chicago Cubs and the White Sox. You could only love one, but at least you had a choice between the two newspapers (or two teams). A deal between Tronc and the Sun-Times would likely have changed that with Tronc eventually absorbing the Sun-Times.

Despite Tronc’s assertions that it would help the Sun-Times “maintain its independent voice,” it is hard to imagine what that might’ve looked like. Sure, they’ve worked together out of necessity since 2007, but it is hard to imagine that Tronc would have allowed the Sun-Times to have a separate editorial voice, especially under the vocal leadership of Tronc chairman Michael Ferro, a former owner of the Sun-Times’ holding company.