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Business

New Suitor Could Enter Fray for Tribune Publishing

A deal that would transform the American newspaper industry ran into complications just a month after a deal was reached, said three knowledgeable people. As a result, New York hedge fund Alden Global Capital may have to fend off a new applicant for Tribune Publishing, the chain that owns major city-wide daily newspapers nationwide, including The Chicago Tribune, The Daily News and The Baltimore Sun, People said.

On February 16, Tribune Publishing’s largest shareholder, Alden, agreed with a 32 percent stake to buy the rest of the chain for $ 630 million. On the deal, Alden would take ownership of all of the Tribune Publishing newspapers – and then outsource The Sun and two smaller Maryland newspapers to a nonprofit owned by Maryland hotel magnate Stewart W. Bainum Jr is controlled.

For the past few days, Mr. Bainum and Mr. Alden have been arguing over the details of the company agreements that would go into effect when the Maryland papers transition from one owner to another. In response, Mr. Bainum has taken the first step to bid for the entire Tribune Publishing.

Mr Bainum has asked the Tribune Publishing Special Committee, a group of three independent board members, for permission to be released from a nondisclosure agreement that bans him from discussing the deal so that he can pursue partners for a new offering, people said.

A spokeswoman for Mr Bainum said he had no comment. Through a spokesman, the Tribune Publishing Special Committee declined to comment. An Alden spokesman had no comment.

Alden has been investing in the newspaper business for more than a decade. Through a subsidiary, the MediaNews Group, the company owns around 60 daily newspapers, including The Denver Post and The San Jose Mercury News. The deal to take over the rest of Tribune Publishing would make it an even bigger force in the news media industry, by some standards the second largest newspaper company after Gannett, the company that publishes one-fifth of all American newspapers, including USA Today.

Journalists have criticized Alden for drastically reducing the costs of its newspapers, often by laying off journalists and reducing local coverage. Over the past year, journalists from several Tribune newspapers have run public campaigns urging local benefactors to buy the newspapers they are employed in so they don’t fall under the control of the hedge fund. Alden claims that it is the rare company that keeps local newspapers from going out of business.

The Alden Tribune deal requires approval from shareholders who own approximately two-thirds of Tribune Publishing shares that Alden does not own. The largest holder of these stocks, with a combined stake of nearly 25 percent, is Patrick Soon-Shiong, the biotech billionaire who owns the Los Angeles Times with his wife Michele B. Chan. Dr. Soon-Shiong, who owns enough of Tribune Publishing to veto the deal himself, has refused to comment on the Alden-Tribune agreement. He declined to comment on Mr. Bainum’s plan on Sunday.

If Mr Bainum manages to reach an arrangement to buy Tribune, he would likely seek local owners for his other newspapers, which include The Hartford Courant, The Orlando Sentinel, and The South Florida Sun Sentinel.

Two of the people said Mr. Bainum, who lives in suburban Maryland, Washington, was willing to put $ 100 million in a bid and then ask for additional investment from others. Since 1997, Mr. Bainum has served as the chairman of Choice Hotels, a multi-billion dollar company that owns the Comfort Inn, Quality Inn, and MainStay Suites brands, a company that grew out of his father’s business.

Alden has been aiming for full ownership of Tribune Publishing since 2019 when it was announced that the company had purchased its 32 percent stake. Last year, an agreement to buy the rest of the company was not reached with an offer valued at $ 520 million for the entire company.

Tribune announced last month that it was holding $ 99 million in cash at the end of 2020. In December, it also announced the sale of a majority-owned subsidiary for $ 160 million.

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Politics

As His Predecessor Is Impeached, Biden Tries to Keep Above the Fray

WASHINGTON – His fellow Democrats are furious after the Capitol attack, but President-elect Joseph R. Biden Jr. has maintained a studied coolness and largely stayed away from the scorching debate that culminated on Wednesday with the impeachment and retention of President Trump His focus was on fighting a deadly pandemic, revitalizing a stalled economy, and lowering the political temperature.

Hours after the House of Representatives voted to indict Mr. Trump a second time, Mr. Biden condemned a so-called violent attack on the Capitol and the “public servants in this citadel of freedom”. He said a bipartisan group of lawmakers condemned the violence by following “the constitution and its conscience”.

But he also pledged to see Americans “stand together as a nation” when he becomes president next week, and showed the deliberate approach to politics that became the hallmark of his march into the White House.

“This nation also remains in the grip of a deadly virus and a volatile economy,” he said in a statement. “I hope the Senate leadership will find a way to deal with their constitutional impeachment responsibilities while working on the nation’s other pressing issues.”

Instead of stepping up his party’s efforts to hold Mr Trump accountable, Mr Biden has postponed spokeswoman Nancy Pelosi and other Democrats in the House and Senate. Over the past week, he has refined policy proposals and introduced new candidates, while delivering a carefully calibrated message above the struggle. “Congress decides that you decide,” he said two days after the impeachment attacks.

Mr. Biden’s emphasis on the impending government challenge is based on the belief that the nation is in a devastating crisis and that his priority must be keeping Americans healthy and restoring the prosperity that has ensued in the midst of an increasingly devastating pandemic has evaporated. But it also highlights the contrast between his cautious, centrist attitude towards politics and the simmering anger of many elected democratic officials and voters over Trump’s attacks on democratic norms and their desire to punish him for them.

The president-elect has made it clear that after Trump’s four turbulent years in office, he wants to work to resolve the rift in America’s political culture.

“Too many of our fellow Americans have suffered too long in the past year to delay this urgent work,” he said in the statement. “I have said many times that if we do it together, there is nothing we cannot do. And it has never been more important for us to stand together as a nation as it is now. “

At the same time, in a sharply divided Congress, he will pursue a democratic agenda and force him to do a balancing act that will certainly be particularly precarious in the opening weeks of his administration, as the Senate will again litigate Mr. Trump’s behavior and weigh his condemnation.

“I think he looks calm,” said Stuart Stevens, a Republican strategist who helped shape Mitt Romney’s 2012 presidential campaign and has become an outspoken critic of Mr. Trump. “Part of that whole moment is getting back to normal. Having a level-headed president who doesn’t tweet angrily and try to win every news cycle – that’s a trademark of Biden. You were very patient. “

As a candidate, Mr Biden pursued a strategy that deliberately kept him above the battle and refused to be drawn into the chaotic vortex of Mr Trump’s presidency at every turn.

But what helped him win the Democratic nomination and the White House could weaken when he is sworn in at the Capitol next Wednesday, amid exceptional security, the potential for further political turmoil, and pent-up demand from his own party legislative victories.

After his tenure, Mr Biden will likely find it next to impossible to keep matters such as impeachment at bay, especially given the spectacle of a Senate process dominating reporting and slowing his urge to gain approval for his candidates. Robert Gibbs, who served as President Barack Obama’s first press secretary, recalled how the White House struggled in the early days of administration in 2009 to maintain the messaging discipline of its campaign.

The Biden transition

Updated

Jan. 14, 2021, 10:58 ET

“In a minute you can decide what to comment,” said Mr. Gibbs. “In the next minute, not only can you not make up your mind, you are also responsible for everything.”

The risk to Mr. Biden is that a determined effort to continue to focus on returning to normal will be seen as disconnected from a moment that doesn’t feel normal at all.

On Wednesday, Ms. Pelosi called Mr. Trump on the floor of the House “a clear and present threat to the country,” and a handful of Republicans warned of “a serious threat” from the seated president insisting “we can’t wait a moment longer” . remove him from office.

In contrast, the week since Mr Trump’s supporters stormed the Capitol, Mr Biden has introduced members of his cabinet, called for a minimum wage increase, pledged to support small businesses and vowed action against the pandemic. Yet while making his disdain clear and reiterating his belief that the current president was unable to take office – and ripped Republicans like Senator Ted Cruz of Texas for their role in promoting unsubstantiated claims of widespread electoral fraud – Mr Biden avoided the questions Mr Trump should be charged and convicted.

Even as lawmakers were debating whether to become the first president to face two indictments, Mr Biden’s transition team on Wednesday sent out summaries of meetings involving some of his cabinet candidates, including a “listening session” on environmental justice issues and a “Virtual Round Table” on education for people with disabilities.

People close to the president-elect say Mr. Biden was appalled by the scene at the Capitol. But he’s caught between competing priorities: holding Mr. Trump accountable for inciting violence against residents of a building he worked in for decades and quickly moving his agenda through a Congress that is already deeply divided.

Mr Biden’s candidacy was at the center of the actions that led to Mr Trump’s first impeachment trial. Mr Trump tried to pressurize Ukraine to undercut Mr Biden through a series of events related to the work of Mr Biden’s son Hunter in that country.

When the Democrats announced their intention to indict Mr Trump for the first time in late September 2019, Mr Biden was slow to embrace a trial that many of his fellow Democrats considered long overdue. Just two weeks after Ms. Pelosi started legal proceedings against Mr. Trump, Mr. Biden specifically approved them.

This approach was in part a campaign strategy specifically designed to counter Mr. Trump’s ubiquitous tactics. But it was also a reflection of Mr. Biden’s temperament and broader political instincts.

Mr. Biden was a Senate creature for more than 30 years, many of them at a time of relative bipartisan fellowship on Capitol Hill. He was a deal maker who took pride in working with Republicans, respecting Senate traditions, and was less inclined than many of his peers to surf party passions. In fact, as a young senator in 1974, Mr. Biden was concerned about the impeachment of President Richard M. Nixon.

“I don’t know what’s on his head, but I suspect he’d have mixed feelings about his body over the past few decades,” said House Democrat James E. Clyburn of the ongoing impeachment whip and a close adviser to Mr Biden . “He’s an institutionalist.”

Mr Clyburn said the president-elect did not want to be distracted from the challenges the country would face once he succeeded Mr Trump in the Oval Office.

“He would love to go ahead to get the country going again and I agree,” said Mr Clyburn, who voted on Wednesday to indict Mr Trump. He said Mr. Biden understood how “egregious” Mr. Trump’s behavior was and “sought a level of comfort” that balanced the president’s punishment with the flipping of the Trump era.

Obama, too, faced difficult decisions when he took office in 2009 about how much time and energy to devote to grappling with the recent past and holding officials in the George W. Bush administration accountable.

In April of that year, Obama approved the publication of memos from the Bush White House approving the use of torture against terrorist suspects. In a long and Solomonic statement, however, Obama called for “reflection rather than retaliation” on an issue on which some Democrats called for war crimes to be prosecuted.

However, the likelihood of Washington being consumed by a Senate trial in the early days of Mr Biden’s administration will make the tension between his predecessor’s accountability and focus on the nation’s other pressing challenges particularly acute.

“As the Senate is consumed by the first,” said David Axelrod, Obama’s chief political advisor in 2009, “he may fear that it will be more difficult to implement his own deadlines and agenda.”