A hedge fund’s ‘mercenary’ strategy: Buy newspapers, slash jobs, sell the buildings

For Alden and its subsidiary, the Gannett empire’s newspapers are clearly an attractive feature. But by purchasing the Memphis building and others like it, Alden has already begun coming for what it may consider a bigger prize: Gannett’s real estate.

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The tactics employed by Alden and Digital First Media are well-chronicled: They buy newspapers already in financial distress, including big-city dailies such as the San Jose Mercury News and the Denver Post, reap the cash flow and lay off editors, reporters and photographers to boost profits.

In a 2018 court case, Alden disclosed it has a series of affiliated real estate companies whose business is focused primarily on efficiently buying, selling, leasing and redeveloping newspapers’ offices and printing plants. —Washington Post