A hedge fund's 'mercenary' strategy: Buy newspapers, slash jobs, sell the buildings

[dalton99a]

https://www.washingtonpost.com/business/economy/a-hedge-funds-mercenary-strategy-buy-newspapers-slash-jobs-sell-the-buildings/2019/02/11/f2c0c78a-1f59-11e9-8e21-59a09ff1e2a1_story.html

A hedge fund’s ‘mercenary’ strategy: Buy newspapers, slash jobs, sell the buildings
By Jonathan O'Connell and Emma Brown
February 11 at 6:31 PM


Gannett, publisher of USA Today, received an unsolicited $1.36 billion offer from MNG Enterprises Inc., a company that has bought newspapers across the country and is known for its drastic cost cuts. (Andrew Harrer/Bloomberg)

When the building housing the downtown Memphis Commercial Appeal newspaper sold last April, the name of the buyer — Twenty Lake Holdings LLC — seemed of little consequence. The paper would be moving from its longtime home amid declining circulation and a shrinking staff under its owner, Gannett. The old newsroom was little more than an afterthought.

But Twenty Lake Holdings is not just another commercial real estate investor. It is a subsidiary of Alden Global Capital, the New York City hedge fund that backed the purchase of and dramatic cost-cutting at more than 100 newspapers — causing more than 1,000 lost jobs.

For Alden and its subsidiary, the Gannett empire’s newspapers are clearly an attractive feature. But by purchasing the Memphis building and others like it, Alden has already begun coming for what it may consider a bigger prize: Gannett’s real estate.

The hedge fund’s newspaper business, Digital First Media, is bidding to buy Gannett, operator of the nation’s largest chain of daily newspapers by circulation, including USA Today — as well as its $900 million in remaining property and equipment — for more than $1.3 billion.

[msongs]

1. gee who would want to get rid of the nation's vibrant and independent press?

and silence opposition as well?

[klook]

2. Bad news. (nt)