LA Times Owner Plans Public Offering
Billionaire Eyes Public Ownership for Major Newspaper
Dr. **Patrick Soon-Shiong**, who has owned the Los Angeles Times since 2018, announced this week his intention to make the publication publicly traded within the next year. This move aims to democratize the newspaper, allowing the public to share in its ownership.
A Shift Towards Public Stake
Speaking on “The Daily Show With Jon Stewart,” **Soon-Shiong** expressed his commitment to this transition, stating he is collaborating with an organization to structure the offering. Details regarding the specifics of the deal, such as whether it will involve an initial public offering (IPO) or another investment model, remain undisclosed.
“Whether you’re right, left, Democrat, Republican, you’re an American. So the opportunity for us to provide a paper that is the voices of the people, truly the voices of the people, is important.”
—Patrick Soon-Shiong, Owner, Los Angeles Times
Navigating Financial Challenges
The biotech billionaire acquired the Los Angeles Times for $500 million, reinstating local ownership after a two-decade absence. However, the publication, like many in the media sector, has faced persistent financial headwinds. In the past year, the company initiated layoffs affecting over 20% of its newsroom staff, amounting to at least 115 employees, a significant reduction in its history.
These cutbacks followed reports that the news organization significantly missed its digital subscriber targets, necessitating a revenue injection to support both its newsroom operations and digital presence. The financial pressures have contributed to recent leadership shifts.
Leadership Transitions Amidst Turmoil
In January 2024, executive editor **Kevin Merida** departed after a tenure marked by significant events, including the pandemic, three Pulitzer Prizes, substantial layoffs, and challenging labor negotiations.
Earlier in October, the editorial page editor resigned following a decision by **Soon-Shiong** to veto the editorial board’s planned endorsement of Vice President **Kamala Harris**. The former editor cited the paper’s silence on the presidential contest during “dangerous times” as the reason for her departure.
The media industry continues to grapple with evolving revenue models. For instance, The New York Times reported a 1.1% increase in total average subscriptions in the first quarter of 2024, reaching 10.9 million, highlighting the ongoing pursuit of sustainable growth (The New York Times, May 2024).