Bainum’s nonprofit Daylight for All Institute will even purchase the Capital Gazette in Annapolis, the Carroll County Instances in Maryland and a number of other different Baltimore-area weeklies and magazines.
Newspapers have been ravaged by years of competitors from digital rivals, particularly Fb and Google. The business has consolidated up to now few years in an effort to stem the tide of fleeing advertisers and readers.
Alden, a privately held firm primarily based in New York, has been among the many few patrons of newspapers and one of many business’s most aggressive cost-cutters. It has slashed newsroom jobs and offered off belongings, reminiscent of actual property, of the newspapers it has acquired.
It at present owns some 200 publications, together with the Denver Publish, St. Paul Pioneer Press and San Jose Mercury Information.
It’s now poised to take over among the business’s best-known, if lately humbled, names. Tribune additionally owns the Hartford Courant, the Solar-Sentinel of South Florida, the Morning Name in Allentown, Pa., the Each day Press in Newport Information, Va., and Virginian-Pilot in Norfolk, Va.
Alden already owns about 32 p.c of Tribune and can purchase the remaining stake for $17.25 per share, or about $431 million.
Bainum is the chairman of Rockville, Md.-based Selection Inns, the large lodge franchise firm with greater than 6,900 properties worldwide. The corporate was based by his late father, Stewart W. Bainum Sr., however Bainum Jr. oversaw its fast progress throughout the previous 20 years.
Bainum was additionally chairman and chief govt of Silver Spring, Md.-based nursing dwelling operator Manor Care from 1987 to 1998 when it merged with one other firm, Well being Care and Retirement Corp.
He was a candidate for governor in Maryland in 1994 and served within the state legislature from 1979 to 1987.
Although Alden had been in talks with Tribune for months, information of the acquisition was met with disappointment by a number of Tribune newspaper reporters and union management, which had lengthy been involved about Alden’s strategy.
“Completely horrible information,” tweeted Chicago Tribune metropolis corridor reporter Gregory Pratt.
NewsGuild President Jon Schleuss known as it “a horrible deal for the corporate, the employees, the shareholders and our democracy. Alden is simply curious about excessive short-term earnings by slicing every thing to the bone. They don’t have any long-term plan.”
Alden had provided to purchase the stability of Tribune in December; its all-cash supply displays a 35 p.c premium over the Tribune’s closing inventory value on Dec. 30, the final buying and selling day earlier than Alden’s supply was publicly disclosed.
The corporate stated the supply has been accepted by Tribune’s board and is anticipated to shut within the second quarter, if shareholders approve.
Tribune’s second-largest shareholder after Alden is billionaire Patrick Quickly-Shiong, who acquired the Los Angeles Instances and San Diego Union-Tribune from Tribune in 2018. Quickly-Shiong owns 24 p.c of Tribune’s inventory.