Tribune Publishing of Chicago could own all four major newspapers in Southern California with the announcement Thursday that it won a bidding war for the Orange County Register and Press-Enterprise in Riverside.
Tribune’s subsidiary Orange County Media was the successful bidder at a public bankruptcy auction to acquire substantially all of the assets of Freedom Communications, owner of the two bankrupt newspapers.
The company already owns the Los Angeles Times and San Diego Union-Tribune.
But the Justice Department quickly filed a civil antitrust lawsuit seeking to block the acquisition, saying Tribune would gain a monopoly on newspaper advertising in the region.
“If this acquisition is allowed to proceed, newspaper competition will be eliminated and readers and advertisers in Orange and Riverside counties will suffer,” said Assistant Attorney General Bill Baer of the department’s antitrust division.
Under the terms of the bankruptcy bid, Tribune will pay $56 million in cash for Freedom Communications and its real estate holdings in Santa Ana and Riverside. The bid is subject to Bankruptcy Court approval at a hearing scheduled for March 21.
“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 Tribune Publishing CEO Justin Dearborn.
The deal faces federal antitrust scrutiny, and the U.S. Justice Department has told Freedom Communications it sees serious issues with the acquisition.
City News Service contributed to this article.
