Tribune Publishing announced today it won a bankruptcy auction for the Orange County Register, giving the Los Angeles Times owner a dominant position in newspapers for Southern California.
The company, which owns a group of 11 metropolitan dailies which also includes the Chicago Tribune and Baltimore Sun, said it would pay USD 56 million for the assets of Freedom Communications.
That will give Tribune - the publishing unit broken off the larger Tribune Co conglomerate in 2014 - the Orange County Register and the Press-Enterprise, along with real estate assets.
"The successful bid for the business of Freedom Communications will allow the Orange County Register and the Press-Enterprise to continue providing a distinct local voice in their communities and deliver premium news and information to consumers across Southern California," said Justin Dearborn, chief executive of Tribune Publishing.
The bid must be approved at a bankruptcy court hearing scheduled for March 21.
But the takeover could face other hurdles. The Orange County daily reported the Justice Department was reviewing a possible antitrust suit if Tribune Publishing became the dominant newspaper in the populous region.
A letter to Freedom from the Justice Department cited "serious" risk of harming competition if Tribune became the owner.
An investor group led by Freedom Communications CEO Rich Mirman left the bidding after all-day negotiations stalled, according to the Register.
Digital First Media, publisher of the Los Angeles Daily News and Long Beach Press-Telegram, was also interested.
Freedom filed for bankruptcy last year after a failed effort led by investor Aaron Kushner, who bought the group in 2012 and invested heavily in print, defying the trend toward digital media.
