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Los Angeles Times Media Group

Los Angeles Times Prepares for Initial Public Offering

Strategic Insights

— 2 min read

The Los Angeles Times, owned by billionaire Patrick Soon-Shiong, is moving forward with its plans to go public with an initial public offering (IPO) expected next fall. As part of this process, the company has announced a private placement seeking to raise up to $500 million, offering preferred stock to investors at $5,000 a share with a 7 percent annual dividend and a 25 percent discount for conversion to common stock. The company plans to list on the New York Stock Exchange under the ticker symbol LAT. This move follows Dr. Soon-Shiong's previous statements indicating his intention to take the newspaper public, which he believes will "democratize" the paper. Despite struggling to become profitable and facing multiple rounds of layoffs and buyouts, Dr. Soon-Shiong has plowed over $750 million into the paper and become more involved in its content.

Key Takeaways:

  • The Los Angeles Times plans to raise up to $500 million through a private placement of preferred stock, offering investors $5,000 per share with a 7 percent annual dividend and a 25 percent discount for conversion to common stock.
  • The company is expected to list on the New York Stock Exchange under the ticker symbol LAT next fall.
  • Dr. Soon-Shiong, the owner of the Los Angeles Times, has plowed over $750 million into the paper and become more involved in its content, including blocking an endorsement of Vice President Kamala Harris and voicing concerns about the opinion section's lack of conservative writers.
  • The Los Angeles Times Guild, which represents the newspaper's employees, has authorized a strike over protracted contract negotiations.
  • Dr. Soon-Shiong has indicated that the foundation of The Los Angeles Times will remain a "steadfast commitment to rigorous, independent journalism and to the diversity of voices that reflect and strengthen the communities we serve."

Statistics:

  • Up to $500 million to be raised through a private placement of preferred stock
  • $5,000 per share with a 7 percent annual dividend
  • 25 percent discount for conversion to common stock
  • Over $750 million invested in the Los Angeles Times by Dr. Soon-Shiong
  • 2026: expected listing date on the New York Stock Exchange
  • July 2024: Dr. Soon-Shiong's first indication of planned IPO on "The Daily Show"
  • 2018: Dr. Soon-Shiong purchased the Los Angeles Times for $500 million

Sources:

  • The New York Times
  • The Los Angeles Times
  • Dr. Patrick Soon-Shiong's email to staff members
  • Jon Stewart's "The Daily Show"
  • Los Angeles Times Guild press release

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