UPDATED, with additional details: Patrick Soon-Shiong, the owner of the Los Angeles Times, said that he plans to take the publication public.
In an appearance on The Daily Show on Monday, Soon-Shiong told host Jon Stewart that “we are literally going to take the L.A. Times public and allow it to be democratized and allow the public to have ownership of this paper.”
Soon-Shiong compared his plan to a football team that goes public, and Stewart noted the ownership structure of the NFL’s Green Bay Packers, which is a publicly owned nonprofit.
Soon-Shiong said he was working with an organization that is putting the plan together, and that the new structure would be implemented over the next year.
The Times unveiled additional details in a press release on Tuesday. It said that a new entity will be created called the L.A. Times Next Network, including the Times, a curated creator platform called LAT Next, Nant Games, NantStudios Virtual Production; and L.A. Times Studios.
The combined entity will pursue Regulation A+ financing, which allows for raising of capital from investors exempt from some of the regulatory requirements of a traditional IPO. There is a $75 million limit on the amount raised in every 12-month period. Most prominently, such a financing path has been used in crowdfunding efforts.
In a statement, Soon-Shiong said, “My family bought the L.A. Times to ensure a voice for the community and now have a path to return it to the people. With this opportunity, readers, community members, everyone, will be the media: direct democracy in action. There’s been an erosion of faith in our institutions, and I look forward to sharing this journey with the public
Soon-Shiong bought the Times in 2018 for $500 million, taking it private after it was owned by publicly traded Tribune Publishing, which was briefly named Tronc. In recent years, the Times has undergone a series of buyouts and layoffs that has significantly reduced the size of the staff, with the latest round of layoffs taking place in May. Last year, the Times cut about 20% of its newsroom staff, as Soon-Shiong said it was losing $30 million-$40 million per year.
In the interview, Stewart asked Soon-Shiong about his potential conflict in owning a biotechcompany and the Times, given that he also would be seeking FDA approval.
“In terms of the Times, there’s news reporting, and there’s editorial and voices, and I never discuss or present my stuff in the L.A. Times. I would go to the New York Times or the Wall Street Journal.”
“Wouldn’t your paper maybe offend the [Trump] administration?”
“It may and it probably does,” Soon-Shiong said.
Last year, Soon-Shiong refused to allow the Times editorial board to endorse in the presidential race. That led to the resignation of the publication’s editorials editor.
Watch the interview above.
