Leaders of the NewsGuild-CWA and Teamsters unions issued a call to Gannett shareholders this week to reject a “hopelessly conflicted” board takeover effort by vulture hedge fund Alden Global Capital, owner of Digital First Media newspapers. The unions represent thousands of employees at Gannett and DFM.
“We believe that hedge funds in general and Alden in particular have had a destructive impact on the news industry,” the unions’ letter stated. “They have slashed staff and sold real estate to extract cash from the news organizations without regard to the role news organizations play in communities.”
Alden, which owns the DFM chain of nearly 200 publications, has been called a “destroyer of newspapers” for its voracious pillaging of its papers’ staff, real estate and resources, with little to no reinvestment.
The full letter is on the SEC website here.