Media News
Pushy investment firm increases offer price on Dallas Morning News

Dallas Morning News
An investment firm is circling back to try and acquire the Dallas Morning News: MNG Enterprises, Inc., an affiliate of Alden Global Capital, a New York investment firm that is into buying up newspapers, has increased its offer to purchase DallasNews Corporation to $18.50 per share, which they note is higher than a competing offer that the DMN has already accepted.
On July 10, parent company DallasNews Corporation announced that The Dallas Morning News would be acquired by New York-based Hearst, joining a portfolio of 28 daily and 50 weekly newspapers, for $15 per share in cash.
But on July 22, MNG Enterprises, Inc. made a competing offer. Alden owns more than 200 newspapers including the Chicago Tribune, the Baltimore Sun, the New York Daily News, and the Denver Post, and has subsequently shrunk newsrooms with cutbacks and buyouts.
The Dallas Morning News has already clarified that they wish to go with Hearst, but Alden is persisting.
A statement from MNG says that they've made proposals to address the concerns of Dallas Morning News majority stockholder Robert Decherd, which have been ignored; and cit their track record for "sustaining quality journalism" as well as their recent acquisition of six newspapers in Northern California from Sonoma Media Investments.
That acquisition followed a similar scenario: Sonoma Media Investments was expected to sell its portfolio — consisting of the Press Democrat, the Sonoma Index Tribune, the Petaluma Argus Courier, the Sonoma County Gazette, La Prensa Sonoma, the North Bay Business Journal, and Sonoma Magazine — to Hearst. But at the last minute, Alden came in with a higher offer.
According to the Sonoma Sun, after the Alden purchase was announced, all newsroom staff were offered buyouts — a standard Alden strategy, usually followed by staff layoffs. According to an NPR report by David Folkenflik, a former reporter at the Baltimore Sun, which is now owned by Alden, a NewsGuild union study covering a six-year period found that Alden cut staff at Guild-represented newspapers by an average of 75 percent.
