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Initial public offerings

Los Angeles Times Prepares for IPO, Seeks to Raise Up to $500 Million

Strategic Insights

— 2 min read

As the company moves closer to an initial public offering (IPO) next fall, the Los Angeles Times is seeking to raise up to $500 million by selling private shares to investors. The newspaper is part of the newly created Los Angeles Times Media Group, which includes LA Times Studios and two of its owner, billionaire Patrick Soon-Shiong's, other businesses. The company plans to list on the New York Stock Exchange in the fall of 2026 under the ticker symbol LAT, with preferred stock available at $5,000 a share offering a 7 percent annual dividend and a 25 percent discount for conversion to common stock.

Key Takeaways:

  • The Los Angeles Times plans to raise up to $500 million through a private placement of preferred stock, with shares available at $5,000 each offering a 7 percent annual dividend and a 25 percent discount for conversion to common stock.
  • The company's owner, billionaire Patrick Soon-Shiong, has plowed more than $750 million into the newspaper since purchasing it in 2018.
  • The Los Angeles Times Media Group includes the newspaper, LA Times Studios, NantStudios, and NantGames, one of the owner's gaming and esports studios.
  • The company's IPO is planned for next fall, with a listing on the New York Stock Exchange in the fall of 2026 under the ticker symbol LAT.
  • The foundation of The Los Angeles Times will remain committed to rigorous, independent journalism and diversity of voices that reflect and strengthen the communities it serves.
  • Dr. Soon-Shiong has become more involved in the publication's content, blocking its editorial pages from endorsing Vice President Kamala Harris in the 2024 U.S. presidential election.
  • The Los Angeles Times Guild voted to authorize a strike over protracted contract negotiations earlier on Thursday, with COVID-19 cases among employees cited as a major reason.

Statistics:

  • The Los Angeles Times plans to raise up to $500 million through a private placement of preferred stock.
  • The company's preferred stock will be available at $5,000 a share offering a 7 percent annual dividend and a 25 percent discount for conversion to common stock.
  • The company's owner, billionaire Patrick Soon-Shiong, has plowed more than $750 million into the newspaper since purchasing it in 2018.

Sources:

  • "Los Angeles Times to Sell Private Shares to Investors, Announces IPO Plans" by The New York Times (no date)
  • "Billionaire Patrick Soon-Shiong Takes The Los Angeles Times to the Next Level" by Forbes (February 28, 2019)

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