Michael Ferro EXITS Tronc

Michael Ferro is retiring from the board of Tronc ahead of the newspaper chain’s $500 million sale of the Los Angeles Times and other California assets.

The Chicago Tribune reports Ferro’s retirement is effective immediately, the company said. Justin Dearborn, chief executive officer of Tronc, was named to succeed Ferro as chairman of the company that also owns the Chicago Tribune, New York Daily News and other major daily newspapers.

Michael Ferro

“I want to thank everyone who worked so hard over the last two years creating great journalism, strengthening the company’s financial position and delivering significant value for shareholders,” Ferro, 51, said in a news release Monday. “I am confident that under the leadership of Justin and the rest of the board and management team Tronc will continue to deliver value for investors while executing the plan for digital transformation.”

While Ferro is stepping down from the Tronc board, he will continue in his role as a paid management consultant to the company, a result of a three-year, $15 million deal struck in December. Ferro received his first $5 million annual fee, which was paid in advance on Jan. 1, according to financial statements filed with the Securities and Exchange Commission.

Last month, Tronc agreed to sell the Los Angeles Times, San Diego Union-Tribune and other California-based assets to Los Angeles biotech billionaire Patrick Soon-Shiong for $500 million in cash. Soon-Shiong, Tronc’s second-largest shareholder, also will assume $90 million of pension liabilities tied to the California properties.

Ferro, a technology entrepreneur who previously led the investor group that owned the Chicago Sun-Times, became the largest shareholder and chairman of Tribune Publishing in February 2016, and the corporate name was changed to Tronc shortly thereafter.