{"id":10342,"date":"2016-02-04T07:35:00","date_gmt":"2016-02-04T13:35:00","guid":{"rendered":"http:\/\/www.robertfeder.com\/?p=10342"},"modified":"2016-02-04T08:57:06","modified_gmt":"2016-02-04T14:57:06","slug":"sun-times-owner-michael-ferro-buys-big-stake-in-tribune","status":"publish","type":"post","link":"https:\/\/robertfeder.dailyherald.com\/2016\/02\/04\/sun-times-owner-michael-ferro-buys-big-stake-in-tribune\/","title":{"rendered":"Sun-Times owner Michael Ferro buys $44.4 million stake in Tribune"},"content":{"rendered":"
\"Michael<\/a>

<\/a> Michael Ferro<\/p><\/div>\n

Chicago\u2019s two daily newspapers may have moved a step closer to common ownership Thursday with the stunning announcement of a $44.4 million investment in Tribune Publishing<\/a> by Michael Ferro, a principal owner of the Sun-Times.<\/a><\/p>\n

With Ferro\u2019s Merrick Media becoming the largest shareholder of Tribune Publishing stock and Ferro being named non-executive chairman of the board, the eventual merger of the Chicago Tribune <\/a>and the Sun-Times would appear inevitable.<\/p>\n

Chicago Tribune Media Group has been distributing the Sun-Times since 2007 and printing the Sun-Times since 2011, both under long-term agreements. In 2014 Chicago Tribune Media Group acquired all 38 suburban daily and weekly newspapers owned by Sun-Times parent company Wrapports LLC.<\/a><\/p>\n

For now Ferro is stepping down as chairman of Wrapports and relinquishing all operating involvement with the Sun-Times. While he will continue to be Wrapports\u2019 largest investor, the Sun-Times will be put into a holding company, to be chaired by investor Bruce Sagan. Wrapports, to be chaired by investor John Canning, will maintain ownership of the Chicago Reader, Splash, High School Cube and other properties.<\/p>\n

\"Tribune<\/a>

Tribune Publishing<\/p><\/div>\n

The Tribune Publishing announcement Thursday focused on Ferro\u2019s investment supporting the company\u2019s plans to pursue \u201cstrategic acquisitions and digital initiatives.\u201d It made no mention of the Sun-Times as a possible acquisition.<\/p>\n

\u201cI am excited to be working with the\u00a0company\u2019s award-winning brands,\u201d Ferro said in a statement. \u201cI see tremendous upside to create value and put Tribune Publishing at the forefront of technology and content to benefit journalists and shareholders.\u201d<\/p>\n

A self-styled tech entrepreneur, Ferro has been a controversial figure<\/a> since he acquired the Sun-Times in December 2011. While failing to improve the paper\u2019s digital presence, he has made drastic cuts to the print product and editorial operation. Once a lightning rod for criticism, Ferro more recently has lowered his public profile and distanced himself <\/a>from the Wrapports brand. In 2015 he took his name off the editorial masthead of the Sun-Times.<\/p>\n

\u201cAs nutty and crazy as he is, Ferro has kept the Sun-Times alive,\u201d said a source close to both companies. \u201cYou have to give him credit for that.\u201d<\/p>\n

In addition to the Chicago Tribune, Tribune Publishing owns 10 other daily newspapers (including the Los Angeles Times and Baltimore Sun) and more than 60 digital properties.<\/p>\n

(This blog is published independently under a licensing agreement with Chicago Tribune Media Group.)<\/em><\/p>\n

Here is the text of the memo Jack Griffin, CEO of Tribune Publishing, sent to employees:<\/strong><\/p>\n

Colleagues:<\/em>
\n\u00a0<\/em>
\nTribune Publishing today announced the Company has completed a $44.4 million private placement transaction with Merrick Media, LLC. This investment supports our ongoing strategic plan and provides the Company with additional capital to accelerate growth through additional strategic acquisitions and digital initiatives.<\/em>
\n\u00a0<\/em>
\nAs an element of this investment, Michael Ferro, the Chairman and CEO of Merrick Media, joins Tribune Publishing\u2019s Board of Directors as Non-Executive Chairman. Eddy Hartenstein, who served as Non-Executive Chairman since Tribune Publishing\u2019s spin-off from Tribune Media in 2014, remains on the Board of Directors.<\/em>
\n\u00a0<\/em>
\nMichael is an excellent addition to our Board. An innovative technology and media entrepreneur, Michael has a successful track record developing companies in the midst of transformation.<\/em>
\n\u00a0<\/em>
\nMichael previously served as Director and Chairman of Merge Healthcare and as Chairman, Chief Executive Officer and founder of Click Commerce, which pioneered the market for Internet portals. Most recently, Michael served as Chairman of Wrapports, LLC, whose investments include the Chicago Sun-Times, Chicago Reader and several high-growth digital businesses. Mr. Ferro will retain his economic interest in Wrapports, LLC but has relinquished all operating involvement with the Chicago Sun-Times.<\/em>
\n\u00a0<\/em>
\nMichael is a strong believer in journalism, in the importance of independent news and editorial voices and the value that is derived from the content our talented journalists create.<\/em>
\n\u00a0<\/em>
\nWith this substantial investment, and with the unrivaled reach of our premium brands, Michael and I both believe that we have a tremendous opportunity ahead and we are confident that the future of Tribune Publishing Company is strong.<\/em>
\n\u00a0<\/em>
\nWe recognize that many of you may have questions and we invite you to join a webcast today at 2 p.m. ET\/1 p.m. CT\/11 a.m. PT. If you have questions, please submit them to tribune.publishing@tribpub.com in advance. Instructions for how to access the webcast will be distributed just prior to the start of the call.<\/em>
\n\u00a0<\/em>
\nJack<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Chicago\u2019s two daily newspapers may have moved a step closer to common ownership Thursday with the stunning announcement of a $44.4 million investment in Tribune Publishing by Michael Ferro, a principal owner of the Sun-Times. With Ferro\u2019s Merrick Media becoming the largest shareholder of Tribune Publishing stock and Ferro being named non-executive chairman of the... Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/posts\/10342"}],"collection":[{"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/comments?post=10342"}],"version-history":[{"count":11,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/posts\/10342\/revisions"}],"predecessor-version":[{"id":10356,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/posts\/10342\/revisions\/10356"}],"wp:attachment":[{"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/media?parent=10342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/categories?post=10342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/robertfeder.dailyherald.com\/wp-json\/wp\/v2\/tags?post=10342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}