Wednesday, January 19, 2011

Singleton out as merger rumors heat up

Singleton
A day after Dean Singleton announced he was stepping down as MediaNews Group CEO, the Wall Street Journal reports that the hedge fund that apparently took control of MNG, Alden Global Capital, is looking to merge it with Freedom Communications, owner of the Orange County Register.

Such a deal would bring together the Register with MediaNews Group's nine Southern California newspapers, led by the Los Angeles Daily News.

According to WSJ:
    The person familiar with the matter said Alden wants to roll at least some of its various newspaper holdings into a single company.
Meanwhile, Singleton said in interviews today that he is not retiring and will remain as "executive chairman" and continue in a strategic and deal-making role for MNG. However, Singleton's hand-picked successor, Jody Lodovic, left in the wake of Tuesday's shake-up.

In an interview with the Denver Business Journal, Singleton declined to say how much of a stake Alden has in MNG. “Alden is a substantial shareholder,” Singleton said. “The changes that we’ve made aligns board membership with share holdings.” Alden apparently has a large enough stake that it is able to put its own people on MNG's board and pick an interim president who will run the company until a new CEO is found.

5 comments:

Anonymous said...

I would have loved to have seen the look on Dean's face when the Alden boys told him that he would have to step down.

Anonymous said...

This is probably why Deano never took the company public, because he knew that Wall Street investors would demand better management and he'd be out of a job. Alden's doing what Wall Street would have done. My bet is that they not only merge with Orange County but they quickly shut down money-losing assets here in the Bay Area .. and there's a lot of them.

Anonymous said...

Looks like Singleton is just trying to put the best face on what looks to be an "involuntary termination" or whatever they call it now.

Anonymous said...

Is the end of Dean Singelton's involvement with Bay Area newspapers? Please, God, say it is.
And let's undo the merger of the MercNews, CCTimes and former ANG newspapers. It should never have happened.

Anonymous said...

Mr. Singleton paid to much for his empire at the worse time possible,and now greed has finally bit him in the assets. What a mess he and his "side kicks" left of what could have been a well respected publishing empire.

Dean will leave a broken man but remember all the good folks you tossed out like trash along your journey. It's never too late to change, life is too short.