The Los Angeles Times has disclosed a significant financial setback, reporting an operating loss of nearly $50 million for the fiscal year 2024, as detailed in newly published unaudited accounts.
The revelation comes amid the newspaper's ambitious plans to raise up to $500 million through a private placement of shares, priced at $5,000 each, as a precursor to an initial public offering (IPO) targeted for 2027. The funding effort is part of a broader restructuring under owner Dr. Patrick Soon-Shiong, who has invested approximately $750 million in the publication since acquiring it in 2018.
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| Patrick Soon-Shiong |
Historical Context: This isn't the first major hit for the LA Times. In 2020, the paper and its sister publication, the San Diego Union-Tribune, reported a "catastrophic" revenue drop of over $50 million, primarily from print ads amid the COVID-19 pandemic. More recently, in early 2025, the LA Times faced additional pressures, including the loss of about 25,000 subscribers and ad revenue from major clients like Netflix. These figures underscore the broader struggles of legacy newspapers transitioning to digital models, with print still dominating revenue but eroding rapidly.
Investment and Restructuring Plans: The $500 million raise involves issuing Series A preferred stock with a 7% annual dividend and a 25% conversion discount to common stock. The funds will support the newly formed Los Angeles Times Media Group, an integrated entity that combines:
- The core LA Times newspaper operations
- LA Times Studios (content production)
- NantStudios (virtual production for film and TV)
- NantGames (gaming and esports)