Chicago Sun-Times owner pays $44.4M for 17% stake in Tribune Publishing

Michael Ferro, the Chicago businessman who owns and controls the Chicago Sun-Times, is locally expanding his media business.

Ferro's investment firm, Merrick Media, paid $44.4 million for a 16.6% stake in Tribune Publishing, which owns the Sun-Times’ rival, Chicago Tribune, the companies said Thursday. In the deal, Ferro becomes the single largest shareholder of Tribune Publishing and agreed to refrain from buying more than 25% of Tribune, the company said in a filing with the Securities and Exchange Commission.

The investment will “enhance (Tribune’s) position for pursuing strategic acquisitions and digital initiatives,” Tribune said in a statement. Tribune, headquartered in Chicago, also owns The Los Angeles Times and nine other daily newspapers.

Ferro, who is chairman and CEO of Merrick Media, joins Tribune Publishing's board of directors as non-executive chairman. Eddy Hartenstein, who was Tribune’s non-executive chairman, remains on the board.

“I see tremendous upside to create value and put Tribune Publishing at the forefront of technology and content to benefit journalists and shareholders,” Ferro said in a statement.

Ferro owns Wrapports, the parent company of the Sun-Times, Chicago Reader, themuse.com and several other digital businesses. In buying his Tribune stake, Ferro has "relinquished all operating involvement" with the Chicago Sun-Times, Tribune said.

Ferro led medical imaging company Merge Healthcare until it was sold to IBM last year in a $1 billion deal. He's also the founder software developer Click Commerce.

Follow Paste BN reporter Roger Yu on Twitter @RogerYu_.