By LOS ANGELES — The owner of the Los Angeles Times has sold sister paper The San Diego Union-Tribune to MediaNews Group, a chain that owns numerous newspapers across the country.
Financial Difficulties Lead to Decision
This decision came shortly after the L.A. Times announced a reduction of 74 jobs, accounting for 13% of its newsroom positions. These job losses were an attempt to address the paper’s financial challenges.
Ownership Shift and Cutbacks
The Union-Tribune, which covers California’s second-largest city, is now under the ownership of Alden Global Capital, a New York hedge fund that has gained criticism for its cost-cutting measures and job reductions across its newspaper portfolio.
In light of the new ownership, buyout opportunities are being offered to employees until next Monday. Layoffs may also be necessary as the new owner aims to alleviate the impact of economic difficulties on media revenues. Efforts will be made to minimize cuts within the newsroom, Sharon Ryan, executive vice president of California for MediaNews Group, emphasized.
Continuing Transformation
The L.A. Times and Union-Tribune were previously purchased for $500 million in 2018 by billionaire Patrick Soon-Shiong and his family from Chicago-based Tribune Publishing. Now that the Union-Tribune sale has been finalized, Soon-Shiong stated that their focus is squarely on transforming the L.A. Times into a self-sustaining institution. He added that a strong and independent news organization is crucial for their hometown of Los Angeles, California, and the entire West Coast.
In a memo to staff members, California Times president and CEO Chris Argentieri expressed appreciation for the owners’ efforts in rebuilding and supporting both news organizations.
The Future of the L.A. Times and San Diego Union-Tribune
“We hope that this change now will position both the L.A. Times and San Diego Union-Tribune to succeed,” stated Argentieri.
No specific details were given regarding the price of the sale or any potential employee cuts at the Union-Tribune, which currently employs 220 individuals.
MediaNews Group, based in Denver, owns an extensive portfolio of publications across the United States. With 68 daily and over 300 weekly publications, including notable names like the Denver Post, Mercury News of San Jose, Orange County Register, St. Paul Pioneer Press, and the Boston Herald, their combined monthly readership exceeds 60 million both in print and online.
Through its Southern California News Group, MediaNews Group also possesses ownership of various other newspapers in the region. These include the Los Angeles Daily News, Press-Enterprise of Riverside, Daily Breeze, Press-Telegram, San Gabriel Valley Tribune, Pasadena Star-News, Whittier Daily News, San Bernardino Sun, Inland Valley Daily Bulletin, and Redlands Daily Facts.
Recent months have brought significant turbulence to the news industry, with organizations like The Washington Post and National Public Radio experiencing layoffs. The decision of the L.A. Times to separate from its sister paper occurred shortly after journalists from multiple local newspapers across the U.S. staged a walkout, demanding an end to detrimental cost-cutting measures within Gannett, the nation’s largest newspaper chain.
Gannett’s decision to implement cuts was prompted by declining revenue due to a downturn in ad sales and customer subscriptions.
The newspaper industry has long grappled with challenges as advertising shifts from print to digital platforms. Additionally, readers have increasingly turned to online sources for information and entertainment, causing a decline in local newspaper readership.
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