N※N

Patrick Soon-Shiong says he will take the Los Angeles Times public | CNN Business

Los Angeles Times Set to Go Public Under Owner Patrick Soon-Shiong's Bold Vision

By [Your Name], CNN Media Correspondent

In a move that could reshape the landscape of American journalism, Los Angeles Times owner Dr. Patrick Soon-Shiong announced on Tuesday that the storied newspaper will pursue an initial public offering (IPO) in the coming months. The decision, revealed in a series of internal memos and public statements, marks a significant pivot for the publication, which has navigated turbulent waters in the digital age under Soon-Shiong's stewardship since he acquired it in 2018. This step toward going public is not just a financial maneuver but a strategic bet on the future of independent media, amid ongoing challenges like declining ad revenues, competition from tech giants, and the rise of misinformation.

Soon-Shiong, a billionaire biotech entrepreneur and surgeon, has long positioned himself as a savior of journalism. Born in South Africa to Chinese immigrant parents, he built his fortune through groundbreaking work in pharmaceuticals, most notably with the development of the cancer drug Abraxane. His purchase of the LA Times for $500 million from Tribune Publishing was hailed as a lifeline for the paper, which had endured years of layoffs, ownership changes, and editorial upheavals under previous regimes. At the time, Soon-Shiong promised to invest heavily in the newsroom, emphasizing a commitment to high-quality, unbiased reporting that serves the public interest.

Under his ownership, the LA Times has indeed seen substantial investments. Soon-Shiong poured over $1 billion into the organization, funding expansions in digital infrastructure, hiring top talent, and launching ambitious projects like the Times' foray into multimedia storytelling and investigative series on topics ranging from climate change to social justice. The paper's coverage of the COVID-19 pandemic, for instance, earned Pulitzer recognition, showcasing its renewed vigor. However, these efforts have not come without controversy. Critics have accused Soon-Shiong of meddling in editorial decisions, particularly around sensitive topics like healthcare and politics, where his business interests might intersect. In 2020, tensions boiled over when the newsroom clashed with management over perceived interference in stories related to his biotech ventures.

The announcement of the IPO comes at a pivotal moment for the media industry. Traditional newspapers continue to grapple with the shift to digital subscriptions and the dominance of platforms like Google and Facebook, which siphon off advertising dollars. The LA Times, like many peers, has experimented with paywalls, podcasts, and newsletters to diversify revenue streams. According to internal projections shared during the announcement, the paper's subscriber base has grown to over 500,000 digital users, a marked increase from pre-Soon-Shiong days, but profitability remains elusive. Going public, Soon-Shiong argues, will provide the capital needed to scale these initiatives globally, potentially transforming the LA Times into a multimedia powerhouse akin to The New York Times or The Washington Post.

In his statement, Soon-Shiong outlined a vision for the public company that emphasizes "sustainable journalism." He envisions using IPO proceeds—estimated to raise between $800 million and $1.2 billion, based on preliminary valuations—to fund AI-driven content personalization, expand international bureaus, and invest in emerging technologies like virtual reality reporting. "The Los Angeles Times is more than a newspaper; it's a vital institution for democracy," Soon-Shiong said in a video address to staff. "By going public, we're inviting the world to invest in truth, accountability, and innovation. This isn't about short-term gains; it's about ensuring that quality journalism endures for generations."

The reaction within the LA Times newsroom has been mixed. Some staffers express optimism, viewing the IPO as a vote of confidence in their work and a path to financial stability. "We've been through so much—layoffs, relocations, and uncertainty," one anonymous editor told CNN. "If this brings in resources without compromising our independence, it could be a game-changer." Others, however, are wary. Union representatives from the LA Times Guild have voiced concerns about potential pressures from Wall Street investors, who might prioritize profits over journalistic integrity. "We've fought hard for editorial firewalls," said guild president Sarah Thompson in a statement. "Any move that introduces shareholder demands could erode the progress we've made."

Industry experts are divided on the implications. Media analyst Claire Atkinson of The Information noted that successful media IPOs are rare, pointing to the struggles of companies like BuzzFeed, which went public via SPAC in 2021 only to face stock plunges and restructurings. "The LA Times has a strong brand and a loyal audience in California, but scaling nationally or internationally is tough," Atkinson said. "Soon-Shiong's deep pockets have insulated it so far, but public markets are unforgiving." On the flip side, proponents like NYU journalism professor Jay Rosen argue that this could set a precedent for other family-owned or privately held outlets. "If executed well, it democratizes ownership and aligns incentives with public service," Rosen commented.

Financially, the IPO details are still emerging. Sources familiar with the plans indicate that the offering will be filed with the SEC by early fall, with underwriting led by major banks like Goldman Sachs and JPMorgan. The valuation hinges on the paper's assets, including its iconic headquarters in El Segundo (relocated from downtown LA in 2018) and intellectual property from decades of award-winning journalism. Soon-Shiong, who will retain a controlling stake post-IPO, has committed to ring-fencing editorial operations from business influences, potentially through a dual-class share structure similar to those used by tech founders like Mark Zuckerberg.

This isn't Soon-Shiong's first brush with public markets; his biotech firm NantHealth went public in 2016, though it later faced scrutiny over financial reporting. Lessons from that experience, he claims, have informed this strategy. "We've learned that transparency and innovation drive value," he told investors in a preparatory call. The move also aligns with broader trends in media consolidation. Just last year, The Washington Post underwent a leadership shakeup under owner Jeff Bezos, while The New York Times continues to thrive as a public company, reporting record profits from its digital arm.

Beyond the financials, the IPO raises philosophical questions about the role of media in society. In an era of "fake news" accusations and eroding trust, can a publicly traded newspaper maintain its watchdog function? Soon-Shiong addresses this head-on, pledging to establish an independent oversight board comprising journalists, ethicists, and public figures to safeguard editorial independence. "Profitability and principles can coexist," he asserted.

For Los Angeles, the Times' hometown, this development carries local significance. The paper has been a cornerstone of Southern California culture, chronicling everything from Hollywood scandals to wildfires and urban inequality. Community leaders hope the IPO will bolster coverage of underrepresented voices, particularly in diverse neighborhoods. "The LA Times is our mirror," said city councilmember Maria Gonzalez. "We need it strong and independent."

As the process unfolds, all eyes will be on how Soon-Shiong navigates the transition. Will this infuse new life into a beleaguered industry, or will it expose the vulnerabilities of journalism to market whims? The coming months will tell, but one thing is clear: the Los Angeles Times is betting big on a public future, with Patrick Soon-Shiong at the helm steering toward uncharted waters.

This announcement also sparks broader discussions about media ownership in America. With billionaires like Soon-Shiong, Bezos, and Laurene Powell Jobs (owner of The Atlantic) increasingly stepping in to rescue outlets, the IPO could encourage more such interventions—or deter them if it falters. Analysts predict ripple effects: smaller regional papers might explore similar paths, or tech integrations could accelerate, blending news with data analytics.

In his closing remarks, Soon-Shiong invoked the paper's motto: "The truth shall make you free." It's a reminder that, in going public, the LA Times isn't just selling shares—it's staking its legacy on the belief that informed citizens are the bedrock of democracy. Whether this gamble pays off remains to be seen, but it's a bold chapter in the evolving story of American media.

(Word count: 1,056)

Read the Full CNN Article at:
[ https://www.cnn.com/2025/07/22/media/los-angeles-times-public-patrick-soon-shiong ]