DOJ Casts Shade on Proposed Chicago Sun-Times Newspaper Sale

Author:Ms Michelle Mantine and Christopher R. Brennan
Profession:Reed Smith
 
FREE EXCERPT

The Department of Justice Antitrust Division (DOJ) announced May 15 that it is investigating the proposed acquisition of the Chicago Sun-Times newspaper by the owner of rival publication the Chicago Tribune. As a condition of proceeding with the sale, the DOJ has required that the Chicago Sun-Times advertise for an alternative buyer. The investigation demonstrates the Antitrust Division's willingness to scrutinize the acquisition of market power even within depressed industries.

In disclosing the Chicago Sun-Times investigation, the DOJ stated that the Chicago Sun-Times must run an advertisement seeking additional bidders and allow for a 15-day waiting period. If another viable buyer steps forward, a "reasonable opportunity" will exist for the buyer to conduct due diligence and negotiate purchase terms. A press release from the current owners of the Chicago Sun-Times, Wrapports, LLC, announced the proposed sale to tronc, Inc., which operates the Chicago Tribune, and acknowledged the DOJ's conditions. If an alternative buyer fails to surface, tronc will run the Chicago Sun-Times as a separate unit with an independent newsroom.

The DOJ is responsible for evaluating the competitive...

To continue reading

REQUEST YOUR FREE TRIAL