U.S. Justice Department Sues to Block Sale of Orange County Newspaper
As Internet took the centre stage, the newspaper industry suffered a setback. Since then, consolidations have grown in number for years as newspapers struggled for existence. Readers and advertisers both turned away from the printed version of news making it tougher for the printed media to survive.
On Thursday, the U. S. Justice Department sued to block a deal among newspapers where Tribune Publishing Co. wanted to buy the bankrupt Orange County Register and one more of the Southern California newspapers. The Justice Department argues that the $56 million deal will curb competition and affect the region's advertisers and readers both.
The action was initiated soon after Tribune announced winning a bid to acquire the Register and Press-Enterprise of Riverside. Freedom Communications owns both the newspapers.
Tribune's contender for Freedom's newspapers was Digital First Media and an investor group which was headed by Freedom's present managers, who later pulled out from the bidding war. The more than hundred year old newspaper serves a prosperous county which houses the Disneyland.
The Tribune currently runs, the Los Angeles Times and San Diego Union-Tribune.
The sale requires an approval from a federal bankruptcy court judge. If it works out, the deal will give Tribune control of four of the biggest daily newspapers in Southern California.
New Zealand News
- PAGCor suffers first-half deficit of $32.5 million due to corona virus-related closures
- Cambodian casino operator NagaCorp all set to partially reopen flagship Phnom Penh gaming venue
- Bridge Investment ordered to stop work on Tinian Casino project due to lack of permits
- Philippines government warns public not to patronize illegal online gambling operations
- Eldorado Resorts’ capital raising plans could be catalyst to finalize $17.3bn Caesars deal