Alden Global Capital adds another notch to its corporate belt. On Monday, the hedge fund announced its purchase of The San Diego Union-Tribune from billionaire Dr. Patrick Soon-Shiong for an undisclosed amount. The Union-Tribune was founded in 1868 and has had a number of owners over the years. It was most recently purchased by Dr. Soon-Shiong in 2018 in a deal that also included the Los Angeles Times. Soon-Shiong still owns the Los Angeles Times.

In a memo to staff, Soon-Shiong said, “We hope that this change now will position both the L.A. Times and San Diego Union-Tribune to succeed.”

After Gannett, Alden Global Capital is the largest newspaper owner in the country. Alden Global Capital and MediaNews Group are known for purchasing newspapers, gutting staff and cutting costs in the name of profit. Alden Global Capital owns about 200 newspapers, including the Chicago Tribune.

Cutbacks are coming

This deal will be no different. In an email to Union-Tribune employees, Sharon Ryan, executive vice president of California MediaNews Group, told staff that cutbacks are necessary to offset revenue declines. Ryan also said they will try to find efficiencies in business operations, distribution and production, according to the Union-Tribune.

As part of the cost-cutting measures, MediaNews Group will offer buyouts until next Monday. If a sufficient number of employees accept the buyouts, layoffs may not be required. However, if enough staff do not take the buyout, layoffs could be coming. The Union-Tribune has about 220 employees total, including 108 in the newsroom.

“I’m grateful to the Soon-Shiong family, who were good owners. Now it’s time to start another chapter. As our staff knows, this isn’t an easy business, but I have a lot of confidence in the future of the Union-Tribune,” said Jeff Light, Union-Tribune editor and publisher.

Last month, the Los Angeles Times eliminated 74 editorial jobs, about 13% of the newspaper’s total newsroom staff. Staff at the Los Angeles Times were notified by email, according to Variety. A spokesperson said the company would undergo a reorganization and eliminate some positions. The cuts included managers, editors, members of the audience engagement team and some audio producers.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.

Letters to leadership

On June 8, 2023, dozens of employees wrote a public letter to leadership who said they were blindsided by the proposed layoffs. They have been attempting a fair union contract since the last one expired six months ago, and their relationship with management is clearly strained.

“Your handling of this proposed layoff sends a clear message to the newsroom: You don’t care about the contract, and you don’t care about us,” the letter said.

Their letter follows a June 7 letter by the LAT Guild Unit Council about the proposed layoffs.

“We are outraged by management’s announcement this morning that it plans to lay off 57 Guild members across several departments, amounting to roughly 15% of our entire newsroom membership, including several Guild leaders,” read the statement. “Management did not consult us in advance about other options for cutting costs and saving money, short of layoffs. We have been bargaining a new contract since September, and this was never hinted at during bargaining.”

Insider Take

The continued trend of large newspaper organizations buying smaller ones shows the frightening state that news media finds itself in. The downward spiral is not new, but economic uncertainty has made it more difficult for newspapers and other media organizations to be profitable. Some are transitioning into nonprofits, while others are being bought and sold like they are simple transactions. These are people who provide important local journalism and critical checks and balances. It isn’t an exaggeration to say that the erosion of these media organizations directly impacts democracy.

Copyright © 2023 Authority Media Network, LLC. All rights reserved. Reproduction without permission is prohibited.