By Sara Fischer, author of Media Trends via Axios
Two unlikely billionaires may be close to derailing a massive newspaper deal that would’ve likely resulted in the loss of hundreds of local journalism jobs across the country.
Driving the news: Maryland hotel magnate Stewart Bainum and Swiss billionaire Hansjörg Wyss have reportedly agreed to put up more than $600 million of their own money to help finance a roughly $680 million bid for Tribune Publishing, the parent to many of America’s most iconic newspapers.
The billionaires’ bid, according to the Wall Street Journal, can now be recommended for consideration by Tribune’s board to its shareholders over a cheaper bid from private equity giant Alden Global Capital.
In February, Alden said it would buy out the remainder of Tribune Publishing, the parent company to the Chicago Tribune, New York Daily News and other local papers, in a deal valuing Tribune at roughly $630 million.
On Sunday, the Journal reported that Bainum and Wyss were able to secure the financing for their bid after originally proposing to put up $200 million of their own dollars. Alden will have four days to come up with a higher bid, or else risk losing the deal, per the Journal.
Be smart: Alden Global Capital is a hedge fund known for cutting journalists at local papers to maximize profits. It has spent years positioning itself as Tribune‘s presumed buyer, by incrementally increasing its stake in the publicly traded company.
