Los Angeles Times, San Diego Union owner Patrick Soon-Shiong is reportedly in talks to partner private-equity firm Donerail Group in the bidding for newspaper publisher Tronc. Soon-Shiong acquired newspapers including the Los Angeles Times and San Diego Union-Tribune from Tronc for $500 million earlier this year.
The Donerail Group is a newly formed investment firm headed by former Starboard Value LP executive Will Wyatt,
There is no certainty a deal will be struck, and sources said the financing might not be fully in place, according to The Chicago Tribune. But if a sale were to occur, it would mark the second change in control in less than three years for the company that owns the Chicago Tribune and other newspapers.
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| Patrick Soon-Shiong |
Wyatt left hedge fund Starboard Value LP in June after three years, according to his LinkedIn profile. He was involved in several media investments for the New York-based firm, including taking a stake in Tronc as it was fending off a hostile takeover bid by Gannett in 2016, according to media reports at the time.
Starboard Value also bought a significant stake last year in Chicago-based Tribune Media as it was navigating its own proposed merger with Sinclair Broadcast Group. That deal fell through earlier this month as Tribune Media ended the agreement and filed a $1 billion breach of contract lawsuit against Sinclair.
More recently, Wyatt served as a paid consultant in Tronc’s $500 million sale of the Los Angeles Times and San Diego Union-Tribune to biotech billionaire Patrick Soon-Shiong, according to documents filed with the Securities and Exchange Commission. The deal was struck in February and closed in June, leaving Tronc virtually debt-free and with nearly $215 million in available cash on hand as of July 1, according to its second-quarter earnings report.
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