By: Staff reports
Company Acted To Protect LA Times From Daily News
The Los Angeles Times reported Thursday that it parent Times
Mirror secretly lent $50 million to MediaNews Group when it was
buying a crosstown rival, the Daily News.
The unusual strategy was a move to ensure that even stronger
rivals would not take over the Daily News, thereby threatening
the Los Angeles Times, unnamed sources told the newspaper.
Denver-based MediaNews Group purchased the Daily News in 1998
for $130 million.
The secret deal included an option giving Times Mirror the right
to purchase the Daily News. Times Mirror executives especially
wanted to keep the Daily News out of the hands of the Orange
County Register, according to the story.
Sources disclosed the deal to the Los Angeles Times only after
Chicago’s Tribune Co. took over Times Mirror earlier this year.
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