Quantcast
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Tronc eludes John Lynch’s embrace

Ex-Union-Tribune chieftain misses deal’s gold ring

April 15  with photo of Patrick Soon-Shiong.
April 15 with photo of Patrick Soon-Shiong.

The newspaper dreams of Rancho Santa Fe's colorful John Lynch, one-time vice-chairman and CEO of the Union-Tribune under Republican kingpin Douglas Manchester, appear to have been shattered by the latest development in the tortured saga of tronc, the Chicago-based chain with a funny name which owns the U-T.

John Lynch. Lynch's arrangement called for the purchase of tronc shares at $23 each, a premium over the current market price of around $17.

Per a June 5 filing with the federal Securities and Exchange Commission, Lynch's previous deal to buy the 25.7 percent of tronc stock controlled by Mike Ferro (who quit as tronc's chairman in March ahead of news that two women had accused him of making inappropriate advances) has fallen apart.

The deal was "not consummated due to Buyer’s breach of its obligations," according to the filing. Lynch's arrangement with Ferro, supposedly backed by putative co-buyer Sargent M. McCormick-Collier — billed as a wealthy heir to onetime Chicago Tribune president Robert Rutherford "Colonel" McCormick — called for the purchase of more than 9 million tronc shares at $23 each, a premium over the current market price of around $17.

A subsequent April 19 SEC filing regarding the deal, which said McCormick-Collier and associates were talking about future asset sales and "potential business combinations or dispositions," led to speculation that onetime border radio maven Lynch would finally ascend to a long-sought executive post in national media.

"There's a need to have a solid newspaper in Chicago that can capture, reclaim its notions of truth and trustworthiness," McCormick-Collier told Crane's Chicago Business in an April 18 profile.

The demise of Lynch's arrangement leaves one more shoe to drop, the long-stalled purchase by Los Angeles physician Patrick Soon-Shiong of the Los Angeles Times and its sister Union-Tribune from tronc for almost $600 million in cash and pension obligations.

Soon-Shiong showed up April 16 in the U-T newsroom to reassure locals that his deal to take over the paper, announced back in early February, was still on track.

But the protracted delay has led some to speculate that the pharmaceutical billionaire is trying to get tronc to lower the price, or, alternatively, may be considering acquiring all of the troubled newspaper chain.

The wait for the paper's would-be rescuer has caused trepidation among the ranks of U-T staffers, worried about a falloff in circulation and advertising, and the absence of any sort of obvious comeback plan.

Tronc has blamed so-called technology transition issues for the holdup, causing some at both the U-T and L.A. Times to wonder whether their jobs may soon be eliminated by robotics.

Here's something you might be interested in.
Submit a free classified
or view all

Previous article

The unsinkable Linda Broyles

“I mean, when they said I couldn’t go home, I could see Coronado!”
Next Article

Vista City Attorney and James Buss donate to Trump campaign

Chula Vista's Jill Galvez barred from voting on fire trucks
April 15  with photo of Patrick Soon-Shiong.
April 15 with photo of Patrick Soon-Shiong.

The newspaper dreams of Rancho Santa Fe's colorful John Lynch, one-time vice-chairman and CEO of the Union-Tribune under Republican kingpin Douglas Manchester, appear to have been shattered by the latest development in the tortured saga of tronc, the Chicago-based chain with a funny name which owns the U-T.

John Lynch. Lynch's arrangement called for the purchase of tronc shares at $23 each, a premium over the current market price of around $17.

Per a June 5 filing with the federal Securities and Exchange Commission, Lynch's previous deal to buy the 25.7 percent of tronc stock controlled by Mike Ferro (who quit as tronc's chairman in March ahead of news that two women had accused him of making inappropriate advances) has fallen apart.

The deal was "not consummated due to Buyer’s breach of its obligations," according to the filing. Lynch's arrangement with Ferro, supposedly backed by putative co-buyer Sargent M. McCormick-Collier — billed as a wealthy heir to onetime Chicago Tribune president Robert Rutherford "Colonel" McCormick — called for the purchase of more than 9 million tronc shares at $23 each, a premium over the current market price of around $17.

A subsequent April 19 SEC filing regarding the deal, which said McCormick-Collier and associates were talking about future asset sales and "potential business combinations or dispositions," led to speculation that onetime border radio maven Lynch would finally ascend to a long-sought executive post in national media.

"There's a need to have a solid newspaper in Chicago that can capture, reclaim its notions of truth and trustworthiness," McCormick-Collier told Crane's Chicago Business in an April 18 profile.

The demise of Lynch's arrangement leaves one more shoe to drop, the long-stalled purchase by Los Angeles physician Patrick Soon-Shiong of the Los Angeles Times and its sister Union-Tribune from tronc for almost $600 million in cash and pension obligations.

Soon-Shiong showed up April 16 in the U-T newsroom to reassure locals that his deal to take over the paper, announced back in early February, was still on track.

But the protracted delay has led some to speculate that the pharmaceutical billionaire is trying to get tronc to lower the price, or, alternatively, may be considering acquiring all of the troubled newspaper chain.

The wait for the paper's would-be rescuer has caused trepidation among the ranks of U-T staffers, worried about a falloff in circulation and advertising, and the absence of any sort of obvious comeback plan.

Tronc has blamed so-called technology transition issues for the holdup, causing some at both the U-T and L.A. Times to wonder whether their jobs may soon be eliminated by robotics.

Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Jorge Hank's wealthy nephew heads for White House dinner

Tijuana billionaire's relative an AMLO invite
Next Article

How they pry Marines out of downtown Oceanside

Darrius Pope cut hair 10 am to 8 pm in Pendleton barracks
Comments
3

I confess. It's my fault that newspapers are struggling. I used to love newspapers and there was a time when I would read the Reader from cover to cover and several sections of the U-T. I gave up on them at the end of the last century when the internet offered more. For some reason the U-T was sending me free copies for the last two years. Most were never opened, instead I gave them to friends who are computer illiterates.

I am better informed than ever while wasting less time on random data that is irrelevant to my interests as a citizen. I don't have ink stains on my fingers or dining table. I'm not responsible for the massive waste of wood pulp that is 'news'. I am willing to subscribe to those online sources who actually do the work and uncover stories that make the world a better place.

June 5, 2018

The drawn-out purchase of the papers by Soon-Shiong looks less likely to actually close with each passing day. The papers themselves reported the "sale" as if it was final when it was anything but final. Then he showed up to talk to the employees and was treating it as a done deal. Well, it ain't over until the fat lady sings (i.e. the money transfers), and we're still waiting. While it looks as if Lynch and cronies are not going to pull off their scheme, I'm not convinced that we'll ever see the sale go through as previously reported.

June 6, 2018

Sign in to comment

Sign in

Art Reviews — W.S. Di Piero's eye on exhibits Ask a Hipster — Advice you didn't know you needed Best Buys — San Diego shopping Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits City Lights — News and politics Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Excerpts — Literary and spiritual excerpts Famous Former Neighbors — Next-door celebs Feast! — Food & drink reviews Feature Stories — Local news & stories From the Archives — Spotlight on the past Golden Dreams — Talk of the town Here's the Deal — Chad Deal's watering holes Just Announced — The scoop on shows Letters — Our inbox [email protected] — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Of Note — Concert picks Out & About — What's Happening Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Pour Over — Grab a cup Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer News — Inside San Diego suds SD on the QT — Almost factual news Set 'em Up Joe — Bartenders' drink recipes Sheep and Goats — Places of worship Special Issues — The best of Sports — Athletics without gush Street Style — San Diego streets have style Suit Up — Fashion tips for dudes Theater Reviews — Local productions Theater antireviews — Narrow your search Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Waterfront — All things ocean Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close