Alden Global Capital, the private equity fund that owns the Chicago Tribune and more than 160 other newspapers across the United States, wants to add the Daily Herald to its portfolio.
The company, which operates through MediaNews Group and Tribune Publishing, is the second largest local news publisher in the U.S. behind Gannett. Alden published a full-page ad in Sunday’s edition of the Chicago Tribune to express interest in acquiring the employee-owned Daily Herald, which covers the city’s northwest, northern and western suburbs.
“We, at the Chicago Tribune, can pay the highest price to acquire Paddock, 30% more than anyone else,” the ad read. “We can also offer the best employment terms for Paddock’s employees. If you are an equity holder of Paddock through ESOP (Employee Stock Ownership Plan), you will be the direct beneficiary of the highest and best sale terms.”
Such promises may be met with suspicion thanks to Alden’s reputation for aggressive cost cutting.
The Chicago Tribune was hit with another round of downsizing last summer when eight newsroom employees were laid off, about 10% of the editorial staff.
Also last summer, the company’s bid to acquire The Dallas Morning News was rejected in favor of a lower offer from Hearst.
Alden’s interest in the Daily Herald is not surprising. It bought the Daily Herald’s printing plant in 2023 for a reported $13 million and is now where the Tribune, Daily Herald, Chicago Sun-Times and other outlets are printed. The Tribune’s former printing plant in Chicago was demolished to make room for a casino.
An acquisition also would give the Tribune access to the Daily Herald’s local news and sports coverage in the north, northwest and western suburbs. And it could create opportunities to grow revenue by cross-selling advertising, as well as cutting back-office expenses through consolidation.
On Jan. 6, Paddock Publications, the owner of the Daily Herald, submitted a letter to the state of Illinois with notification of an upcoming sale as required by the Strengthening Community Media Act. The paper has been around since 1872 and has a print circulation of more than 50,000.
Alden’s pitch could also face a skeptical audience because of the Daily Herald’s unique ownership structure.
In 2018, the Paddock Board of Directors opted to shift the organization to being fully employee owned; all shares of the company’s stock are held by employees of the company.
As a result, Alden may need to convince the employee owners of the Daily Herald that it would provide some job security – a challenge given its history of deep cost cutting at other publications.
Alden also is likely not alone in coveting the Daily Herald.
The Chicago Sun-Times reported that privately owned Shaw Media, based in far northwest suburban Crystal Lake, could also be interested in buying the Daily Herald.
Shaw Media properties span northern Illinois and Iowa, and it currently has a content-sharing agreement with the Daily Herald. Shaw, which was founded in 1851, is one of the oldest continuously owned and operated family newspaper companies in the U.S.
Another recently aggressive newspaper acquirer is billionaire David Hoffmann, who has deep Chicago area roots and recently took over Lee Enterprises.
Hoffmann, who grew up in north suburban Chicago and who now lives in Florida, completed his majority acquisition of Lee last week. Lee’s portfolio of more than 110 newspapers already includes five in Illinois.
The Chicago Tribune and Shaw Media declined to comment for this story. Representatives from the Daily Herald did not respond to a request for comment.
A previous version of this story incorrectly stated the price Alden bought the Daily Herald's printing plant for. According to Crain's Chicago Business, the building was purchased for $13 million.
