Deals

Chicago Tribune’s New Investor Is Hedge Fund Known for Layoffs

  • Alden Global Capital is acquiring Michael Ferro’s stake
  • Earlier talks to merge with McClatchy fizzled a year ago
Michael FerroPhotographer: Chris Goodney/Bloomberg
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Tribune Publishing Co. soared as much as 15% after Alden Global Capital LLC, a hedge fund known for making deep cuts to newsrooms, bought out the newspaper company’s largest stockholder.

Shares of the company, which publishes the namesake Chicago Tribune and other big-city newspapers, traded as high as $11.20 after Alden purchased 9.07 million shares from Michael Ferro and his Merrick Ventures for about $118 million. Tribune is in talks with Alden to put two of its representatives on the board, the company said Tuesday.