After Hearst submitted a bid to acquire the News, a subsidiary of Alden Global Capital has thrown its hat into the ring.
DALLAS — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.
Less than two weeks after DallasNews Corp. agreeing to a buyout by Hearst Corp., the parent company of the Dallas Morning News has received an alternative offer from an entity of Alden Global Capital.
MNG Enterprises Inc., owned by Alden, delivered a letter to the DallasNews board on July 22 proposing an $88.3 million all-cash deal, according to a federal filing. The takeover offer values DallasNews — which owns both DMN and marketing agency Medium Giant — at $16.50 per share, 18% higher than the all-cash offer from Hearst announced July 10. The $14-per-share bid from Hearst valued DallasNews at $74.9 million.
Alden, a hedge fund firm based in New York that owns MNG, has attracted controversy for focusing on cost-cutting at the newspapers it owns. For example, the Denver Post had a newsroom of more than 250 prior to Alden taking over in 2011. By April 2018, that had shrunk by nearly two-thirds to around 70, prompting the editorial board of the Post to publish a public rebuke of Alden.
DallasNews did not respond to a request for comment. Jeff Johnson, president of Hearst Newspapers, previously said his company was “committed to supporting The Dallas Morning News’ continued success through smart investments in their digital strategy, compelling journalism and expanded audience reach.” Hearst Communications owns 28 daily newspapers including the Houston Chronicle, Austin-American Statesman and San Antonio Express-News; 50 weekly publications and 200-plus magazines.
To read more about the competing bids for the Dallas Morning News, head to the full article on the Dallas Business Journal.
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