Michael Ferro, the previous chairman of newspaper writer Tronc, has agreed to promote his complete stake within the firm to a brand new media agency.
Ferro owned 25.4% of Tronc’s excellent shares, giving him the controlling stake. The general public submitting posted Friday says he’s promoting all 9 million of his shares for about $209 million. The deal is anticipated to shut subsequent month, pending remaining approval.
Tronc is the mum or dad firm of newspapers together with the Chicago Tribune, The Baltimore Solar, the New York Every day Information, and the Orlando Sentinel.
The client is McCormick Media, in keeping with the submitting. The Chicago Tribune reported that McCormick Media is owned by the household of Robert “the Colonel” McCormick, which managed the Tribune all through a lot of its historical past. A spokesperson for Tronc confirmed the household’s possession of McCormick Media.
The sale marks a remaining severing of ties between Tronc and Ferro, who made a sudden departure as chairman final month simply earlier than Fortune journal revealed an investigation into claims of sexual harassment towards him. A spokesperson for Ferro didn’t refute the allegations.
Ferro’s tenure at Tronc (TRNC) was cheered by Wall Avenue traders. Underneath his management, the agency’s share value climbed from about $7 per share to greater than $16.
However for journalists, Ferro’s management was painful. Administration at The Tribune, the Los Angeles Occasions and others mentioned he was liable for funds cuts that scaled again the newsrooms’ sources and talent to cowl tales. Tronc mentioned earlier this 12 months it was promoting the The Los Angeles Occasions to a California billionaire.
Justin Dearborn, Tronc’s CEO, mentioned in a notice to workers Friday that the inventory sale “doesn’t alter our enterprise technique.”
Robert McCormick, the previous Tribune proprietor whose household controls McCormick Media, headed the Chicago Tribune for many years. A workers author for the Tribune as soon as wrote that he was a “champion of press freedom” who was closely concerned within the paper’s day-to-day protection.
A consultant for McCormick Media couldn’t be reached for remark Friday.
—CNN’s Brian Stelter contributed to this report.