Tribune Publishing shareholders voted on Friday to allow the sale of the newspaper chain to the hedge fund Alden Global Capital.
The financial company is known for slashing newsroom budgets to the bone in order to extract as much profit as possible from their purchased publications, and they now own storied publications like the Chicago Tribune and Orlando's paper of record, the Orlando Sentinel.
The pending sale of the newspaper brought reporters and editors out in droves to protest the idea of being under the yoke of Alden. The Sentinel Guild lobbied local millionaires with pleas to buy out the publication, though that relief did not materialize.
The vote appeared to come down to one ballot, that of shareholder Patrick Soon-Shiong. Soon-Shiong owns 24% of the company and his vote could have swung the sale either way. Soon-Shiong released a statement saying that he abstained from the vote, which would be tallied as a "no" vote. However, Chicago Tribune editor Mary Ellen Podmolik shared that Soon-Shiong's ballot was unmarked rather than marked "abstain." This ballot was counted as a vote in favor.
One wrinkle in the Tribune sale:
— David Folkenflik (@davidfolkenflik) May 21, 2021
SEC filing says "Patrick Soon-Shiong's vote in favor of the transaction is required, based on his current ownership of the common stock." It also said abstentions would be counted as a vote against the Alden bid - so PSS abstention would doom it
Alden will win Tribune: LAT owner Patrick Soon-Shiong, who holds 24 percent stake in Tribune, says he has abstained from voting as it has been a passive investment.
— David Folkenflik (@davidfolkenflik) May 21, 2021
Full statement from Soon-Shiong spokesoman Hillary Manning👇🏼 pic.twitter.com/1D4Ne2BaXl
The Sentinel Guild released a statement decrying the sale.Story update: Tribune Publishing officials confirmed that proxy ballots registered to Patrick Soon-Shiong, who said he abstained, had been submitted without the “abstain” box being checked, and those votes were tallied as a “yes” vote.https://t.co/njXQj6aDAI
— Mary Ellen Podmolik (@mepodmolik) May 21, 2021
"Today, Tribune Publishing shareholders voted to put profit and greed over local news in our country. While we are saddened by the turn of events, we know that our work over the past year — to build allies in the community and to raise awareness about Alden — is not in vain," the Guild shared. "Those allies will support us as we fight against Alden to protect local news and the cuts that they will inevitably try to make. We stand ready, willing and able to fight."
–
Stay on top of Central Florida news and views with our weekly newsletters, and consider supporting this free publication. Our small but mighty team is working tirelessly to bring you Central Florida news, and every little bit helps.
