The biotech billionaire from Los Angeles, Patrick Soon-Shiong, is having his eyes set on two paper firms, the Los Angeles Times and the San Diego Union-Tribune. He is all set to strike a deal with the owner Tronc of these papers. There are talking about a $500 million cash deal.
If the deal gets through, then the L.A. Times will return to local ownership after 18 years. The owner of the LA times is based in Chicago. This sale would do Tronc a world of good and would see a big change in its business strategy.
The deal was going on in full swing on Tuesday and an announcement of the same would happen anytime this week. There are even reports that the deal could fizzle out at the last minute. Hence, everyone associated with the biotech firm is tight-lipped.
If the deal is struck, Tronc will use the $500 million amount to pay off the company debt and look for other acquisitions. The pension liabilities will be in force for the California News Group that owns these two parts.
Soon-Shiong is one of the richest men in Los Angeles and owning the L.A. Times will help in expanding his business profile further. Soon-Shiong’s repeated attempts to buy the Times last year were repulsed by Tronc.