The owner of the Los Angeles Times, Patrick Soon-Shiong, has announced plans to take the newspaper public within the next year, a move he said would “democratise” the struggling publication. The announcement was made during an interview on a late-night talk show with Jon Stewart.
The paper, once a prestigious and influential institution, has seen its staff and circulation decline significantly over the years. It is currently losing tens of millions of dollars annually. Last year, it laid off 20% of its staff, and paid subscriptions stand at fewer than 300,000, compared with over 11 million at the New York Times and more than 2 million at the Washington Post.
Soon-Shiong, a former surgeon who made his fortune in pharmaceuticals and biotechnology, bought the paper in 2018 with promises of restoring its greatness and public mission. However, those promises have largely not materialised. The paper has faced controversy, including the owner's decision to block a planned presidential endorsement of Kamala Harris, leading to subscriber cancellations and the resignation of the top opinion editor.
Large regional newspapers that have thrived in the US are those with local ownership committed to editorial independence. Examples include the Philadelphia Inquirer, owned by a local non-profit, the Boston Globe, owned by Boston-based John W Henry, and the Minnesota Star Tribune, owned by Minnesota businessperson Glen Taylor. In contrast, predatory chains such as Alden Global Capital have been criticised for prioritising profits over journalism.
The proposal to take the paper public raises questions about its future. The plan seems far from ideal, given that the paper's current situation remains dire. Despite having a respected editor and talented journalists, the paper continues to face significant financial challenges.
