Alden Global Capital Newspapers Under Fire for Business Model

Alden Global Capital Newspapers are under fire for their business model, which has led to widespread criticism from journalists, readers, and industry experts. Alden Global Capital is a private equity firm that has acquired several major newspapers, including the Denver Post and the Orange County Register.

Their business model is centered around cutting costs and increasing profits, which has resulted in significant job losses and reduced editorial quality. The Denver Post, for example, has seen its staff reduced by over 50% since Alden's acquisition.

Alden's focus on cost-cutting has led to the elimination of many essential positions, including copy editors, designers, and investigative journalists. The Orange County Register has also seen a significant reduction in its editorial staff, leaving it with a skeleton crew to cover local news.

The impact on editorial quality has been stark, with many critics arguing that Alden's focus on profits has compromised the integrity and accuracy of the news.

Alden Global Capital attempted a hostile takeover of Gannett in 2019.

The company's profits were near the top of the industry, according to Digital First Media.

Alden purchased a 5.9-percent stake in Lee Enterprises in January 2020.

They made an offer to purchase Lee in its entirety for roughly $141 million in November 2021.

Lee's board enacted a shareholder rights plan, also known as a "poison pill", to ward off the purchase attempt.

The plan forbids Alden from purchasing more than 10% of the company, and will be in force for one year.

The board unanimously rejected the Alden bid, saying the proposal "grossly undervalues Lee and fails to recognize the strength of our business today".

Alden filed a lawsuit against Lee Enterprises in state court in Delaware, but the Delaware court found in favor of Lee in mid-February 2022.

Alden also attempted to remove board members Mary Junck and Herbert Moloney during the March 2022 board elections, but this attempt failed.

Shareholders returned both directors to the Lee board despite Alden's opposition.

Alden Global Capital's management of American newspapers has been heavily criticized for its impact on journalism. Critics describe Alden as "a destroyer of newspapers" and "a vulture hedge fund" that aims to maximize profits quickly by driving newspapers into the ground.

Journalists have lost their jobs in cities across the country, including Denver, Boston, San Jose, Trenton, Chicago, Baltimore, and New York. Alden's acquisition of the Chicago Tribune in 2021 was particularly devastating, with the new owners gutting the newsroom and leaving staff feeling shocked and demoralized.

The impact of these newsroom cuts is staggering, with a quarter of the newsroom at the Chicago Tribune taking buyouts and many big-name reporters, columnists, and photographers leaving the publication. This has made it nearly impossible for the remaining staff to fill the gaps.

The loss of local newspapers has a ripple effect on communities, leaving a void in civic reporting and accountability. As one journalist noted, "a lot of cities almost operate with the assumption that there will be at least one local newspaper, in some cases several local newspapers, acting as a check on the authorities."

The Tribune Company, which owns several newspapers, was still turning a profit when Alden bought it, but the hedge fund immediately offered aggressive rounds of buyouts and shrunk its newsrooms in the name of increasing profit margins. This has led to a decline in quality journalism and a loss of trust in the media.

Senators have blasted Alden Global Capital's business model, calling it "newspaper-killing."

The US Senators sent a scathing letter to the founders, vowing to keep a close eye on the company.

The hedge fund behind Digital First Media newspapers has been accused of draconian staff cuts, and has been criticized for prioritizing profits over newspaper quality.

A leaked financial report showed the company raking in industry-topping earnings, despite these criticisms.

The NewsGuild-CWA has urged Duke University to sever its ties with hedge fund president Heath Freeman, citing his company's history of "newspaper pillaging."

Twenty-one prominent US Senators have sent a scathing letter to the founders of Alden Global Capital, decrying its “newspaper-killing business model”. They're not holding back their criticism.

The letter was sent last week on the eve of a significant event, but the exact details are not provided. The Senators are clearly not happy with Alden's approach.

They're vowing to "continue watching Alden closely", which suggests they're not going to let this issue drop anytime soon.

The NewsGuild-CWA, which represents workers at 12 Digital First Media newspapers, is urging Duke University to sever its ties with hedge fund president Heath Freeman, who is also the president of Alden Global Capital.

Duke University has a connection to Alden's president, Heath Freeman, which has raised eyebrows among critics of the hedge fund's business practices. Twenty-one prominent US Senators have sent a scathing letter to the founders of Alden Global Capital, decrying its "newspaper-killing business model" and vowing to "continue watching Alden closely".

Alden Global Capital has made a hostile takeover bid to acquire Gannett, a move that has been criticized by many in the industry. The hedge fund's business practices have been called into question, with some accusing it of prioritizing profits over people.

Digital First Media's profits "near the top of the industry", according to the company, but this success has come at a cost: draconian staff cuts and a lack of investment in the publications themselves. The NewsGuild-CWA is urging Duke University to distance itself from Alden's president, Heath Freeman, due to the harm caused by his company's business practices.

Alden Global Capital's newspapers have been plagued by draconian staff cuts, including at The Denver Post and San Jose Mercury News.

The hedge fund behind these cuts is more interested in raking in industry-topping earnings than in maintaining a clean and safe work environment.

A leaked financial report shows jaw-dropping profits for the "outlaw" newspaper owner, with a hedge fund turning a blind eye to rats and mildew.

This profit-driven focus has serious consequences for the employees and the community served by these newspapers.

Alden Global Capital's recent activities have been making headlines. Alden is now buying and selling America's old Greyhound terminals.

Denver Post newsroom workers are taking a stand, invoking the "Thirst Amendment" to raise awareness about the working conditions under Alden's ownership.

Pittsburgh newspaper workers are making history, but the details of their achievement are not specified in the provided article section.

The NewsGuild is urging public pension funds to divest from Cerberus, a company associated with Alden Global Capital.

Here are some of the key targets of Alden Global Capital's activities:

The rebellion by The Denver Post's editorial board against its hedge-fund owners sparked a national outcry.

A front-page article in The New York Times and coverage in The Washington Post, Time magazine, and other major outlets highlighted the issue.

The rebellion was a call to action for Digital First Media editors and publishers.

The Denver Post's hedge-fund owners have been criticized for their handling of the newspaper.

The national outcry that followed the rebellion showed that the public is paying attention to the struggles of local newspapers.

Digital First Media editors and publishers can take a cue from the rebellion and stand up to their own owners if necessary.

The New York Times and other major outlets are willing to cover the stories of local newspapers, so there's no reason for Digital First Media editors and publishers to be silent.