News Summary
The Los Angeles Times Media Group (LATMG) has announced plans for an initial public offering under the ticker LAT on the New York Stock Exchange, seeking to raise $500 million. This comes as journalists authorize a strike due to stalled contract negotiations. LATMG intends to merge its digital and newspaper operations while dealing with significant financial challenges, including plummeting print circulation. As the company plans a private placement financing, tensions within the newsroom rise over contractual issues and workforce reductions.
Los Angeles, CA – The Los Angeles Times Media Group (LATMG) has announced plans to go public, alongside ongoing tensions as journalists authorize a strike amidst contract negotiations. The company’s strategy includes making shares available on the New York Stock Exchange under the ticker symbol LAT, in an effort to raise up to $500 million.
LATMG, which encompasses a digital production studio and a gaming company, revealed its intentions on Thursday. The company plans a round of private placement financing designed to attract large investors, private equity groups, and institutions. Following this initial funding stage, LATMG will conduct a Regulation A offering to the public. The private placement offering will feature Series A preferred stock with a 7% annual interest rate, which can be converted into common stock at a 25% discount to the future public share price. The minimum investment for accredited investors is set at $5,000.
The placement agent for this offering is Digital Offering LLC, and detailed information is available at Join.LATimes.com. According to the Securities and Exchange Commission (SEC), accredited investors are individuals who have a net worth of $1 million (excluding their primary residence) or an annual income exceeding $200,000 for the past two years.
Dr. Patrick Soon-Shiong, LATMG’s chairman and CEO, aims for the company to achieve a financially sustainable operation focused on the newspaper’s journalism. To this end, LATMG intends to merge its newspaper and digital operations with Soon-Shiong’s other companies, including NantGames, LA Times Studios, and NantStudios. The goal is to develop a unified content management and streaming platform that fosters community engagement and enhances premium content creation.
Despite these advancements, LATMG is grappling with significant financial difficulties. The Los Angeles Times has seen a substantial drop in print circulation and advertising revenue. Currently, the average weekly print circulation stands at approximately 100,000, while direct paid digital subscriptions are around 243,000. The company has had to reduce its workforce significantly, including a more than 20% staff reduction in 2024.
The Los Angeles Times Guild has spent the last three years trying to negotiate a new contract, and recently, it voted to authorize a strike with 85% support from its members. Frustrations have mounted among journalists due to the protracted negotiations. Although Soon-Shiong has expressed confidence that unresolved contract issues will not hinder potential investments, the atmosphere within the newsroom remains tense.
Since Soon-Shiong acquired the L.A. Times and other publications in 2018 for $500 million, his total investment has surpassed $750 million. In 2023, he divested the San Diego Union-Tribune to MediaNews Group. Since the formation of the union in 2018, the newsroom’s staffing has dropped from around 450 employees to just over 200. Journalists are advocating for wage increases to match inflation rates, alongside protections against outsourcing and layoffs during negotiations.
To further emphasize its commitment to the newsroom, Soon-Shiong has pledged not to entertain offers for the Los Angeles Times, assuring that the integrity of its journalism remains a priority. Meanwhile, other media entities are expanding, with initiatives like News Corp’s The California Post entering the competitive market.
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Additional Resources
- Los Angeles Times: LATMG Moves Forward to Go Public
- Los Angeles Times: A New Direction for Boiling Point
- Hollywood Reporter: LA Times Journalists Authorize Strike
- Los Angeles Times: Soon-Shiong’s Plan to Go Public
- Los Angeles Times: 2026 Esports World Finals in Los Angeles
- Wikipedia: Los Angeles Times
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