Heath Freeman, president of Alden Global Capital, is poised to become one of the largest stakeholders in a reorganized Cumulus Media after its Chapter 11 restructuring, holding a 31.86% voting interest through Next Gen Radio Enterprises LLC.
The stake is detailed in Transfer of Control Amendments filed with the FCC last month and remains pending regulatory approval.
Industry observers warn the arrangement could pave the way for significant job cuts at the major radio group, consistent with Alden’s history of deep staff reductions at newspapers it has acquired.
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| Heath Freeman |
Critics have long labeled Alden a “vulture” fund for its approach of buying distressed papers, selling real estate and other assets, slashing staff to restore margins, and investing little back into newsrooms.
On the day it completed the Tribune acquisition, NPR noted its signature pattern of deep newsroom cuts. NewsGuild reported that Alden offered buyouts across Tribune newsrooms within days, reducing news staff by roughly 20%. NewsGuild-CWA President Jon Schleuss has said the firm cut nearly three-quarters of its newspapers’ combined workforce between 2012 and the end of 2020. Nieman Lab has described the same consistent strategy across Alden’s holdings.