Hedge fund that owns National Enquirer to buy newspaper publisher McClatchy
Source: Marketwatch
NEW YORK Hedge fund Chatham Asset Management plans to buy newspaper publisher McClatchy out of bankruptcy, ending 163 years of family control.
The companies did not put a price on the deal in an announcement Sunday. The agreement still needs the approval of a bankruptcy judge; a hearing is scheduled for July 24.
McClatchy is one of the largest newspaper companies in the U.S. It owns 30 papers including the Miami Herald, the Charlotte Observer and the Sacramento Bee. It filed for bankruptcy protection because of a heavy debt load stemming from its $4.5 billion purchase of the Knight-Ridder newspaper chain in 2006, just as the newspaper industry went into steep decline.
Chatham was McClatchys largest shareholder and debt holder. It beat out a bid from Alden Global Capital, another hedge fund that has taken a leading role in the U.S. newspaper business.
Chathams other media holdings include the Canadian newspaper chain Postmedia and National Enquirer publisher American Media Inc. But industry expert Ken Doctor has noted that it doesnt make financial sense to combine those with McClatchy in order to cut costs, as newspaper dealmakers like to do. And the emergence of Alden Global Capital as a bidder has given rise to speculation that Chatham will try to combine McClatchy with Aldens holdings or with another big newspaper company, like Gannett.
Read more: https://www.marketwatch.com/story/hedge-fund-that-owns-national-enquirer-to-buy-newspaper-publisher-mcclatchy-2020-07-12?mod=home-page
empedocles
(15,751 posts)orwell
(7,781 posts)bucolic_frolic
(43,511 posts)it's all one giant loose corporation now. Leviathan.
blm
(113,136 posts)Protecting the powerful elites while targeting their enemies.
kimbutgar
(21,285 posts)Hedge funds killed the toy stores.
Hedge funds killed the retail chain stores
Now hedge funds will be the final nail in the coffin of the newspaper industry.
Just in time of the election to get mf45 re elected. Shite.
OregonBlue
(7,756 posts)dhill926
(16,390 posts)Judi Lynn
(160,682 posts)Literate humans wait daily for the breakthrough to allow greedy, conservative publishers to be left bankrupt, and out of business for good.
There is STILL a need in our lives for access to real information, and enough information.