Los Angeles Times to Go Public Under Patrick Soon-Shiong's Ownership

Strategic Insights -

Patrick Soon-Shiong, the owner of the Los Angeles Times, announced on Monday that he plans to take the newspaper public within the next year. This move comes as the newspaper continues to struggle with profitability, accumulating a history of deep losses that would likely impact its appeal to investors. Since acquiring the newspaper in 2018, Dr. Soon-Shiong has faced criticism for his leadership and decision-making, including the layoff of over 20% of its newsroom staff and preventing the newspaper from endorsing Vice President Kamala Harris for president.

Key Takeaways:

  • The Los Angeles Times has lost $50 million in 2024 with paid subscriptions falling to just over 300,000 (AdWeek, [1]).
  • Dr. Patrick Soon-Shiong has struggled to make the newspaper profitable since acquiring it in 2018 for $500 million (Los Angeles Times, [2]).
  • The newspaper laid off over 20% of its newsroom staff last year, affecting morale and staff relationships with management.
  • Dr. Soon-Shiong has prevented the newspaper from endorsing Vice President Kamala Harris for president, stirring unrest among staff (Los Angeles Times, [2]).
  • The organization under Nant Capital's ownership has maintained a local ownership for nearly two decades, with the last sale being in 2018.
  • Dr. Soon-Shiong has not shared details about how the public offering would affect his control over the newspaper.
  • He claims that taking the company public would "democratize" it and allow the public to "take ownership," though he did not detail how that would work.
  • Dr. Soon-Shiong has built his fortune by developing cancer drugs and owns the newspaper through his private investment arm, Nant Capital.

Statistics:

  • Losses of $50 million in 2024 for the Los Angeles Times (AdWeek, [1]).
  • Revenue: Not explicitly provided in the source material.
  • Paid subscriptions: Just over 300,000 (AdWeek, [1]).
  • Layoffs: Over 20% of the newsroom staff (Los Angeles Times, [2]).
  • Sale price: $500 million (Los Angeles Times, [2]).

Sources:

  • AdWeek: Original reporting on the Los Angeles Times' financial struggles.
  • Los Angeles Times: Reporting on Dr. Soon-Shiong's ownership and acquisition of the paper, as well as the newspaper's operations.