Chicago Sun-Times Sold To Newly-Formed, Union-Backed Investment Group

CHICAGO, IL — A newly-formed investment group announced the purchase of the parent company of the Chicago Sun-Times Thursday. ST Acquisition Holdings, which was organized by the Chicago Federation of Labor (CFL) and former Chicago Alderman Edwin Eisendrath, announced the finalization of its acquisition of the Chicago Sun- Times, the Chicago Reader and the straightdope.com website. As a separate acquisition, the newly-formed group also purchased Answers Media, a full service digital communications company. The terms of the deals were not disclosed.

On Wednesday, the Department of Justice's Antitrust Division announced that it was closing its investigation into the possible acquisition of the Chicago Sun-Times by tronc because Wrapports, the Sun-Times parent sold to a buyer that presently has no financial stake in any other newspapers.

"This is a historic coalition of workers and like-minded investors who represent a cross- section of the Chicago population, coming together with one common goal: to preserve independent media entities in Chicago and protect their journalistic integrity. This effort amplifies the diversity of voices and perspectives of Chicago stories both locally and nationally," said CFL President Jorge Ramirez, who will serve as Chairman of the Chicago Sun-Times.

The acquisition group’s intent is to meld these pieces into a powerful, multiplatform news organization, while sustaining the Chicago Sun-Times legacy as a trusted news brand.

“We are investing in a journalistic voice that’s genuine, accurate and consistently reporting news that matters to the people of Chicago. We are inspired by the journalistic excellence of the Chicago Sun-Times, the Chicago Reader and the Straight Dope website,” said Edwin Eisendrath, who will serve as CEO of the Chicago Sun-Times. “The additional acquisition of Answers Media will allow us to expand and contemporize these channels with high-quality multimedia content and innovative technology solutions that will attract a broad audience of new readers and advertising partners.”

Chicago Sun-Times Editor and Publisher Jim Kirk and other members of the Sun-Times leadership team have been asked to stay on to ensure both quality and continuity of operations.

“The primary goal in seeking out new ownership for the Sun-Times and Wrapports LLC’s other properties was to find a buyer who was willing to make the investments necessary to sustain the editorial independence and viability of our publications long into the future,” said Kirk. “We look forward to working with the new ownership group to bring new technology and other innovative approaches to support our world-class team of journalists.”

Union groups investing with the group include the Chicago Federation of Labor, the LIUNA Chicago Laborers’ District Council, the Chicago Regional Council of Carpenters’ Labor & Management Committee, Gompers-Lewis Media Corp. (an LLC owned by the International Union of Operating Engineers Local 150), SEIU Healthcare Illinois Indiana Missouri & Kansas, Service Employees International Union Local 1.

ST Acquisitions Holding also includes individual investors, including Answers Media CEO Jeff Bohnson, corporate restructuring specialist Bill Brandt, TV producer and the CEO's younger brother John Eisendrath, former trader at the Chicago Board of Trade Stuart Ellison, lawyer for jailed ex-governor Rod Blagojevich Leonard Goodman, lawyer and friend of Rahm Emanuel Sidney Herman, businessman, and democratic fundraiser Elzie Higginbottom, former WLS anchor Linda Yu and two that have asked to remain anonymous.

Read more from the Chicago Sun-Times or watch the press conference announcing the deal:

Related:

• Tronc, Owner Of Chicago Tribune, To Buy Chicago Sun-Times
• Deadline For Bids To Buy Chicago Sun-Times Extended
• Ex-Alderman Leads Union Group Trying To Buy Chicago Sun-Times
• Union Group Meets Deadline To Buy Sun-Times

Top photo: Former Chicago Ald. Edwin Eisendrath announcing the close of a deal to buy the Chicago Sun-Times | Credit: Charles Rex Arbogast | Associated Press