This website is using a security service to protect itself from online attacks The action you just performed triggered the security solution There are several actions that could trigger this block including submitting a certain word or phrase You can email the site owner to let them know you were blocked Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page Sign up for The Media Today A GROUP OF INVESTORS led by a former member of the Chicago City Council bought the Chicago Sun-Times this week, preventing the paper’s acquisition by Tronc, the parent company of the Chicago Tribune. The group reportedly purchased the Sun-Times for $1 and pooled $11.2 million to fund the newspaper’s operating costs Sun-Times reporter Lauren FitzPatrick tweeted during a meeting between the paper’s staff and new owners and disclosed several details including that the paper will likely move from its current office to save money on rent: Money will get saved on rent when @suntimes moves to "trendy" west loop — Lauren FitzPatrick (@bylaurenfitz) July 13, 2017 it noted that Eisendrath “didn’t yet have permission to identify all the members of his investment group.” Today, FitzPatrick reported on Twitter that other investors include veteran broadcast journalist Linda Yu; lawyers Skip Herman and Len Goodman; Edwin’s brother John Eisendrath; and developer Elzie Higginbottom the limited liability company formed for the purchase also attracted the support of several unions: In addition to the Chicago Federation of Labor union investors include SEIU Local 1 and Operating Engineers Local 150 the investment group resembles the city itself—or TRENDING: The man behind depressing, viral Trump Jr. tweet speaks The sale effectively ends the Justice Department’s anti-trust investigation into Chicago-based Tronc’s effort to purchase the Sun-Times and the Chicago Reader from Wrapports. CJR reported in May that Tronc had entered into a nonbinding letter of intent to purchase Wrapports Tronc had pledged that the two papers would maintain independent editorial operations But most observers in Chicago saw the bid as the beginning of the end for the city’s status as a two-newspaper town—one of the few remaining in America In a tweet yesterday, the day the sale closed, Eisendrath described the investment group as “civic-minded leaders” who were inspired by the writing and reporting at the Sun-Times. “We wanted to make sure that Chicago had a genuine voice with honest & good reporting that connects with working men & women,” he wrote in another tweet it might seem unusual that the unions stepped up to buy the paper But unions are big business in Chicago and in Illinois which has one of the largest union workforces in the country “I can think of no other publication today in the United States with the support of labor unions,” says Steve Franklin who covered the labor beat for the Tribune and has taught courses on employee and labor relations at the University of Illinois “It could be a genie that would open up and give them a voice.” Franklin says the new union ownership in the Sun-Times is a “nice comeuppance” for the smaller paper over the Tribune which waged war against its blue-collar unions in the 1980s and broke them “They’re upgrading from Progress Illinois to the Sun-Times.” Having somebody like Edwin Eisendrath and the unions coalesce around the paper is crucial.” Eisendrath a former city council member who represented the Lincoln Park neighborhood on the city’s north side from 1987 to 1993 comes from a wealthy family of bankers and investors with a long history in Chicago Eisendrath became an administrator in the Chicago regional office of the Department of Housing and Urban Development he lost a Democratic primary bid for Illinois governor to former governor Rod Blagojevich The unions have said they will not interfere with editorial coverage at the paper “This is a fairly left[-wing] group of people “I don’t think anyone should have the idea that there is impartial reporting these days The idea that a news organization is not going to be slanted is a myth.” Sheila Solomon, a long-time recruiter for the Chicago Tribune and currently manager of recruitment and internships at Rivet Radio says she worries that the well-intended investors simply do not have the financial resources to keep the Sun-Times alive I am not as excited about the deal as some other people are,” she says “My fear is that they really will not have enough money to sustain what we know needs deep they saved the Sun-Times from being bought by a big bad Tronc but for how long and really what is that going to mean?” ICYMI: Eight simple rules for doing accurate journalism Has America ever needed a media defender more than now? Help us by joining CJR today. Please enable JS and disable any ad blocker This website is using a security service to protect itself from online attacks. The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. You can email the site owner to let them know you were blocked. Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page. Print For more than a century one family owned the Los Angeles Times and used the newspaper to build great wealth and exert political influence over how the city would take shape the Chandler family — descendants of hard-charging Civil War veteran Gen who bought the paper in 1884 — became increasingly fractured and disenchanted with the newspaper business 18-year battle with its out-of-town owners announced that it had reached a deal to sell The Times Spanish-language Hoy Los Angeles and community newspapers to L.A agreed to pay $500 million for the Southern California papers and it will assume $90 million in pension liabilities The sale will bring a return to local ownership and possibly some stability for a 136-year-old institution that has lagged behind its better-resourced rivals on the East Coast It caps a particularly stormy period for the newspaper which has seen three editors in six months its publisher placed on unpaid leave amid a sexual harassment investigation and a historic vote to unionize the newsroom “It is often said that Southern California is the place where the world comes to see its future It has welcomed generations of immigrants who worked hard started new businesses and helped others do the same,” Soon-Shiong said in a note to The Times and other publications “My own family immigrated from southern China to South Africa generations ago We chose to settle in Los Angeles because this is the place that most felt like home As someone who grew up in apartheid South Africa I understand the role that journalism needs to play in a free society,” Soon-Shiong said news of the change of ownership was greeted with guarded optimism “Our readers expect and deserve the high-quality independent journalism that has defined The Times for decades,” said the newsroom guild’s organizing committee Times Guild looks forward to working with a local owner who can help us preserve The Times as a guardian of our community and as the voice of the American West.” Who is Patrick Soon-Shiong? An L.A. billionaire with big ideas — and mixed achievements » was not the first Los Angeles billionaire to express interest in buying The Times music mogul David Geffen offered Tribune $2 billion for The Times but the Chicago-based company refused to let go Philanthropist Eli Broad occasionally voiced a desire to buy The Times it was Soon-Shiong who came up with the cash Soon-Shiong took a different tack than the other suitors by investing in Tronc in spring 2016 which positioned him as the company’s second-largest shareholder Soon-Shiong attempted to buy The Times several times despite friction with Tronc Chairman Michael Ferro match — Patrick played it beautifully,” Los Angeles investment banker Lloyd Greif said “And it happened faster than I’m sure he imagined it would The sale to Soon-Shiong came together quickly Tronc had fended off previous efforts to buy the company outright or peel off the California newspapers It had insisted that The Times was key to its strategy to build a global entertainment brand — given its proximity to Hollywood amid the ongoing drama at The Times — including rapidly escalating hostilities between the newsroom staff and its short-lived editor in chief and a barrage of negative publicity — Ferro began to reassess his company’s strategy for The Times He came up with a number — $500 million — and decided that if he could fetch that price for The Times and the Union-Tribune It’s unclear whether he or Soon-Shiong made the first overture this time around but talks began less than a week ago and reached a fever pitch over the weekend That’s when the contours of a deal came together “This was a fairly efficient process,” said Dennis Culloton He noted that Ferro’s change of heart about The Times came after the Chicago investor stepped back and assessed “the big picture.” “Michael’s career leading public companies has been marked by one thing — increasing value for shareholders,” Culloton said “And when there was an opportunity to get this kind of a price he determined that it was a great opportunity to bring enormous value to shareholders and the company.” Tronc’s stock price leaped after the deal was announced Soon-Shiong is paying a premium for the struggling media properties traditional publications have fallen out of favor on Wall Street Tronc’s print revenue plummeted 17% in the first nine months of 2017 But major newspapers have found several billionaire benefactors willing to throw them a lifeline Amazon founder Jeff Bezos bought the Washington Post in 2013 Red Sox owner John Henry scooped up the Boston Globe and Minnesota billionaire and Timberwolves owner Glen Taylor bought the Minneapolis Star-Tribune As a local who already owns a minority stake in the Lakers Soon-Shiong probably will face high expectations — both from the newsroom and the Southern California community which has witnessed a spate of recent layoffs and cutbacks at other local publications including LA Weekly and the chain of local dailies owned by Digital First Media chief executive of downtown L.A.’s City National Bank and chairman of the Los Angeles Coalition for the Economy and Jobs said he hopes Soon-Shiong’s purchase of The Times will be followed by additional investment in the newspaper “The Times has been struggling through a downward spiral of resources and staff as well as excessive turmoil,” Goldsmith said “Patrick has the opportunity to both bring stability and continuity and a commitment to the long-term well-being of the community greater coverage and increased staff will result in coverage that will attract more readers.” “The Los Angeles Times is a crucial institution for our city and its journalism an essential voice for our democracy,” Broad said in a statement Soon-Shiong will support the Times’ hardworking staff as they provide in-depth unbiased coverage of this globally significant region of 15 million people as well as the national and international stories that matter most to its readers.” The Times’ staff has endured multiple cuts that have reduced the newsroom to about 400 from its high of 1,200 in the late 1990s it remains one of the largest metropolitan news staffs in the country — and continues to break major stories and capture coveted journalism awards Now Tronc will have a pile of cash as it retools its strategy — without its biggest source of content “We will have a versatile balance sheet that will enable us to be even more aggressive in executing on our growth strategy as a leading player in news and digital media,” Justin Dearborn The company said it will form a new division called Tribune Interactive which will be led by former Los Angeles Times Publisher Ross Levinsohn 19 amid revelations that he was a defendant in two sexual harassment lawsuits resigned from his position at The Times on Wednesday It is also expected to use the $500 million in proceeds to pay down debt make acquisitions and further its digital strategy across the remaining papers Dearborn said Chris Argentieri will resume his role as general manager of the California News Group and work with Soon-Shiong during the transition Other key executives also will continue in their current roles: Jim Kirk as editor in chief of The Times and Jeff Light as publisher and editor of the San Diego newspaper Though the purchase would mean a change of ownership for The Times and Union-Tribune the papers still will be collaborating with Tronc under a 12-month agreement to share corporate services such as payroll and human resources Media analyst Ken Doctor speculated that Tronc as it seeks to build its own national online news network including its entertainment and celebrity coverage “Ferro wanted to commercialize Los Angeles Times content and I’d be surprised if he didn’t keep the ability to do that in the contract,” Doctor said “They can get a steady stream of content without owning the asset.” The purchase agreement filed Wednesday with the Securities and Exchange Commission indicates Soon-Shiong is purchasing the papers for cash and that the transaction does not involve his holdings of Tronc stock That suggests Soon-Shiong will retain his ownership stake in Tronc and would have an interest in both Tronc and The Times The San Diego paper has experienced its own upheaval and ownership changes which is celebrating its 150th anniversary this year was owned by the Copley family until it was sold to Platinum Equity in 2009 for an undisclosed sum that was estimated at $50 million or more which was purchased by Tribune Publishing in 2015 Most of the downsizing has come from outsourcing of printing but the news and advertising departments have experienced layoffs as well “I want to assure you — everyone from the press room to the newsroom — that I will work to ensure that you have the tools and resources to produce the high-quality journalism that our readers need and rely upon,” Soon-Shiong said in his note to employees of The Times meg.james@latimes.com Twitter: @MegJamesLAT San Diego Union-Tribune staff writer Roger Showley contributed to this report. 6:40 p.m.: This article was updated with comments from Patrick Soon-Shiong. 5:55 p.m.: This article was updated with additional details about deal negotiations and reaction to the sale. 9:25 a.m.: This article was updated with Tronc stock’s movement, additional information about the San Diego Union-Tribune’s history and comment from the Union-Tribune’s editor and publisher. 7 a.m.: This article was updated to note that the deal is expected to close this spring. 6:45 a.m.: This article was updated with details about Tribune Interactive and the findings of an independent investigation into L.A. Times Publisher Ross Levinsohn. 6:20 a.m.: This article was updated with statements from Patrick Soon-Shiong and Justin Dearborn. This article was originally published at 5:50 a.m. James Rufus Koren covered banking and finance for the Los Angeles Times. He previously wrote for the Los Angeles Business Journal, where he covered banking, manufacturing and other industries, and for daily newspapers in Southern California and rural Michigan. He was raised in St. Louis and small-town Iowa, headed west to study at the University of Southern California and now lives in Long Beach. Hollywood Inc. Business Subscribe for unlimited access Site Map Billionaire founder of NantHealth to buy troubled paper as well as San Diego Union-Tribune announced on Wednesday plans to sell the paper as well as the San Diego Union-Tribune to L.A.-based billionaire Patrick Soon-Shiong the founder of Culver City-based NantHealth and a major shareholder in Tronc will pay $500 million in cash for the troubled media outlets in a deal that is expected to close by the end of this quarter or early next The news comes after a turbulent few months at the L.A which demoted its top editor Lewis D’Vorkin after less than four months on the job the former editor and publisher of the Chicago Sun-Times was just named editor in chief after D’Vorkin was moved to Chief Content Officer at Tronc “We are pleased to transition leadership of the Los Angeles Times and The San Diego-Union Tribune to local ownership and we are certain that the journalistic excellence in Southern California will continue long into the future,” Tronc CEO Justin Dearborn said in a statement “This transaction allows us to fully repay our outstanding debt significantly lower our pension liabilities and have a substantial cash position following the close of the transaction.” “We look forward to continuing the great tradition of award-winning journalism carried out by the reporters and editors of the Los Angeles Times The San Diego Union Tribune and the other California News Group titles.” The Michael Ferro-controlled Tronc also owns The Chicago Tribune Soon-Shiong’s investment in Tronc (when it was still Tribune Publishing) kept the company from being purchased by Gannett, but the two have been feuding since Ross Levinsohn, the L.A. Times’ publisher since August, had been on unpaid leave after reports last month of his “frat house” behavior and previous allegations of sexual harassment He was restored as publisher after an internal investigation found no wrongdoing, and named to head a new division called Tronc Interactive, according to the paper and has demanded that Levinsohn not return to his position A rep from their Guild did not immediately respond to TheWrap’s request for comment about the report of a sale In 2016, Tronc attempted a purchase of the Orange County Register, but a federal judge blocked the sale saying that Tronc would have a monopoly if it owned the four largest papers in four counties of southern California Runner-up bidder Digital First Media bought the Register instead lockdown and protests about the death of Ahmaud Arbery – the most striking photographs from around the world this week Photograph: Michele Cattani/AFP/Getty Images Photograph: Sergei Supinsky/AFP/Getty Images Photograph: Marco Longari/AFP/Getty Images Please include what you were doing when this page came up and the Cloudflare Ray ID found at the bottom of this page.