Swiss billionaire Hansgarg Wise Tribune has agreed to contribute িয়ন 100 million to the publication, joining forces with a Maryland hotel magnet to prevent it from acquiring hedge funds from one of America’s largest newspaper companies.
Wise Choice Hotels has partnered with Stuart Benum, chairman of the hotel, who offered to buy the Tribune for $ 50 million this month in hopes of launching its magazine, which includes the Chicago Tribune, the New York Daily News and the Baltimore Sun as nonprofits.
The entrance to Weiss is the latest turning point in the fight for control of the Tribune, a New York-based hedge fund called Alden, known for receiving distressed American newspapers, last month struck a deal to buy the media group worth 6 30,630 million.
As part of that deal, the Tribune will sell the Baltimore Sun and two other Maryland newspapers to Bainum for about $ 65m. However, Benoit and Alden were unable to agree on the details of the deal in recent weeks, prompting Benoit to encourage his own bid for the entire company.
Benum has been looking for investors to join his bid for the entire Tribune in recent days. He plans to invest িয়ন 100 million of his own money, while Wise has agreed to contribute ১০ 100 million and, according to people familiar with the deal, can also provide debt if needed. These people said that Bainum has also earned interest from banks for providing loans.
The interest from Swiss-American entrepreneur Wise, who made his fortune by producing medical devices, will give the Tribune the heart of journalists who have embraced the arrival of financial groups as a struggle for survival against their business.
After decades of shrinking revenues, struggling U.S. newspapers have become targets of hedge funds and private equity.
Alden, one of the top consolidators, has cut deep spending on its headlines to increase profitability. Staff at its publications have described the agency as “vulture capitalist,” and politicians such as Senate Majority Leader Democrat Chuck Schumer have argued that the management of local newspaper hedge funds is having an adverse effect on American democracy.
He told the New York Times that over the past year the Tribune unions have run a campaign against Alden and sought out local wealthy individuals to buy their papers, which prompted Wise’s interest in buying the agency. “I don’t want to see another magazine where the American people have the opportunity to increase the amount of truth as they go down the drain,” he said.
Wise and Bainum finally plan to look for investors for the Tribune newspapers, with the aim of making them unprofitable.
Despite Benum’s efforts, the Tribune’s board last week recommended that shareholders vote in favor of Alden’s proposal, according to a regulatory filing that offered greater guarantees than any other option.
Alden’s takeover requires the approval of at least two-thirds of the Tribune’s shareholders, excluding Alden. It could leave the fate of the Tribune to the pharmaceutical billionaire and owner of the Los Angeles Times, who owns about 24 percent of the Tribune – a big part of complicating Alden’s plans.