Los Angeles Times looks to raise $500M for planned IPO
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The Los Angeles Times aims to raise up to $500 million by selling private shares to accredited investors ahead of its plans to go public by 2027, according to a public investor presentation.
Why it matters: The paper would need to convince investors that its future plans are compelling and lucrative in order to survive a challenging public market for media companies.
- The company reported a net loss before income taxes of $48 million for fiscal year 2024 on revenue of more than $237 million, according to the offering documents.
Zoom in: The new entity, Los Angeles Times Media Group, includes the almost 144-year-old newspaper, its production studio division LA Times Studios, and billionaire owner Patrick Soon-Shiong's other ventures — production company NantStudios and gaming and esports company NantGames.
- The offering seeks up to $500 million in Series A preferred stock, priced at $5,000 a share with a 7% annual dividend and a 25% conversion discount to common stock. The minimum investment is one share.
- The company plans to list on the New York Stock Exchange under the ticker LAT.
Between the lines: The Times hired Digital Offering LLC, the investment firm that took Newsmax public, to help with the planned IPO, according to the offering documents.
- Soon-Shiong also brought on Eric Beach, according to Semafor which called him a "MAGA whisperer," to recruit new voices for the editorial board.
- Beach is a Republican strategist who ran Great America PAC for President Trump's 2016 and 2020 campaigns.
Catch up quick: Soon-Shiong bought the LA Times and the San Diego Union-Tribune in 2018 for $500 million but sold the latter to MediaNews Group in 2023.
- The newsroom has undergone multiple rounds of layoffs, cutting more than 20% in 2024. Soon-Shiong has also faced backlash from his staff, notably for blocking the paper's planned presidential endorsement for Kamala Harris.
- Soon-Shiong told Jon Stewart on "The Daily Show" in July he intended to take the storied paper public to "allow it to be democratized and allow the public to be the ownership of this paper."
Reality check: The LA Times is betting investors will buy into a hybrid media business that combines legacy journalism with digital entertainment and gaming.
- But other media IPOs, like BuzzFeed, have struggled in recent years.
What to watch: LA Times journalists voted last week to authorize a strike after more than three years of contract negotiations.
