Michael Ferro Sells Stake In Tronc

Michael Ferro

Michael Ferro, the former chairman of newspaper publishing chain Tronc, has agreed to sell his 25% stake in the company for $208.6 million, according to USAToday citing a filing made by the company with the Securities and Exchange Commission late Friday.

Ferro, who resigned last month as chairman of the company that publishes the Chicago Tribune, Baltimore Sun, New York Daily News and other newspapers, will sell his entire stake owned through his venture Merrick Media to McCormick Media, according to the filing.

The buyer is connected to the McCormick family that has owned the Tribune for much of its history, the Tribune reports. McCormick Media will pay $23 per share for more than 9 million shares. Tronc stock closed at 17.15 per share Friday, up 4.19%.

Ferro stepped down as chairman in March just hours before Fortune magazine published a report detailing sexual harassment allegations from two women who worked for him at his investment firm.

The sale by Ferro, who is the largest shareholder of Tronc, comes at a tumultuous time for the company.

Last month, Tronc agreed to sell its biggest circulation paper, the Los Angeles Times, as well as the San Diego Union-Tribune to billionaire health care executive Patrick Soong-Shiong for $500 million. The deal is expected to close this month.

In January, Times employees voted to unionize and publisher Ross Levinsohn was suspended after reports surfaced about sexual harassment allegations against him. Levinsohn was cleared by a company investigation.

Earlier this week, a group of Tribune employees informed newsroom management that they were seeking to start a union at the Midwest’s largest newspaper.