---

 [ LOS ANGELES ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=312)

#  Chaos, Curiosity and Conflicts of Interest at the LA Times

@THE GUSS REPORT-The corporate chaos continues at the *Los Angeles Times*and its parent company, Tronc, which may be resulting in poor supervision over transparency on stories it publishes.

Written by Daniel Guss.

 ![](https://www.citywatchla.com/images/stories/May-2018/039r.png)

May 14 2018

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

 [Comments](#disqus_thread)

@THE GUSS REPORT-The corporate chaos continues at the *Los Angeles Times*and its parent company, Tronc, which may be resulting in poor supervision over transparency on stories it publishes.

For example, has the *Times*explored whether one of its reporters (who has a voice on affordable housing and homelessness issues) is personally benefitting from, and actually residing in, multi-million-dollar housing flips owned by a family real estate trust, thus helping drive up the cost of housing while reporting on it?

Inquiring minds want to know…

But things aren’t all that bad at the *Times*these days, *unless* you are a staffer, executive, the prospective new owner Dr. Patrick Soon-Shiong or a shareholder of Tronc.

On Friday, Tronc stock plummeted 4.29%, having been down more than 7% earlier in the trading day. The bad news is that this is an *improvement*over how the stock did the day before, when it dropped 6% as its latest disappointing earnings and forecast were released.

So why, as of Sunday morning, is there no apparent story about it on its website or app?

The *Times*reporters were very vocal, including on social media, about their recent formation of a writer’s guild. And we heard from them on its recently released report on gender and race pay inequity at the *Times* which showed that white men there are paid more than virtually all others. So why are they suddenly silent on Tronc’s plummeting stock price?

Have they been ordered by Tronc to stay quiet in order to keep intact the half-billion-dollar sale of the *Times*and the *San Diego Union Tribune*to Soon-Shiong? And how, in just a few weeks, is he supposed to move the paper from downtown LA to El Segundo when it appears he is either trying to pay a whole lot less for the two newspapers, or to extricate himself from the deal altogether?

Does it have something to do with the fact that Tronc paid just $1 for the famed *New York Daily News*tabloid just eight months ago? The two deals are not apples-to-apples, but it *is* like comparing a Granny Smith to a Red Delicious. And the silence from the *Times*on the subject is, indeed, delicious.

At close of business on Friday, Tronc’s entire enterprise was worth just $598.5 million, so for just $98.5 million more than Soon-Shiong was believed to have offered for just the *Times*and *SDUT*, he could have owned the entire Tronc universe and sold off the assets he didn’t want to keep. Whoever is advising him on this deal is not earning their salary.

Meanwhile, rent on the *Times*DTLA digs is expected to go up by $1 million a month in June, raising the question of who is more desperate, Tronc, to keep the deal, or Soon-Shiong, to kill it or pay a heck of a lot less for it? (Soon-Shiong may also be on the hook for $90 million in pension obligations.)

While some media outlets suggest that the delay in closing the deal has more to do with the complex untangling of the *Times*and *SDUT*from the Tronc universe, don’t buy it. And don’t buy Tronc stock, which I suspect may dip below its 52-week bottom of $10.80 per share in the *coming* 52 weeks.

The smartest guy in the room may be former Tronc co-owner, Michael Ferro, who is believed to have dumped his Tronc shares before the recent plummet and got a $15 million consulting fee for what amounts to simply getting out of Dodge. A regulatory filling shows that Ferro sold his shares at $23 per, which on Friday, were worth just $16.96 each. And Ferro is *really* smart: he got that moolah in a lump sum payment last week.

*(Daniel Guss, MBA, is a member of the Los Angeles Press Club, and has contributed to CityWatch, KFI AM-640, Huffington Post, Los Angeles Times, Los Angeles Daily News, Los Angeles Magazine, Movieline Magazine, Emmy Magazine, Los Angeles Business Journal and elsewhere. Follow him on Twitter @TheGussReport. Verifiable tips and story ideas can be sent to him at* [*TheGussReport@gmail.com*](mailto:TheGussReport@gmail.com)*. His opinions are his own and do not necessarily reflect the views of CityWatch.) Prepped for CityWatch by Linda Abrams.*

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Message

 [ ![Home - HHR Rent is too High - SB-2](https://www.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://www.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/34/065h-34e1b43b.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33212:reminder-to-the-red-states-turnabout-is-fair-play&catid=395)

### [Reminder to the Red States, Turnabout is Fair Play](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33212:reminder-to-the-red-states-turnabout-is-fair-play&catid=395)

GELFAND’S WORLD - Indiana has been pounded by rains that resulted in widespread flooding. While the rain was still comi…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/d8/066m-d8f0fac6.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33229:democrats-finally-tell-iowa-and-new-hampshire-you-dont-go-first-anymore&catid=395)

### [Democrats Finally Tell Iowa and New Hampshire: You Don’t Go First Anymore](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33229:democrats-finally-tell-iowa-and-new-hampshire-you-dont-go-first-anymore&catid=395)

GELFAND’S WORLD - Earlier in the week, the Democratic National Committee did something good. Mind you it wasn’t great…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/d0/065o-d02f23ac.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33213:californias-empty-classrooms-are-a-warning-sacramento-cant-ignore&catid=378)

### [California’s Empty Classrooms Are a Warning Sacramento Can’t Ignore](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33213:californias-empty-classrooms-are-a-warning-sacramento-cant-ignore&catid=378)

A STUDENT'S VIEW - California is spending more on public education, yet classrooms are emptying, campuses are closing…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/da/066j-daf22e28.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33231:a-prisoner-a-peacemaker-and-israels-defining-choice&catid=375)

### [A Prisoner, A Peacemaker, and Israel’s Defining Choice](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33231:a-prisoner-a-peacemaker-and-israels-defining-choice&catid=375)

P.O.V - Marwan Barghouti remains one of the most consequential—and controversial—figures in the Israeli-Palestinian con…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/df/065q-dfb89383.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33224:john-mckinney-on-what-separates-the-city-attorney-candidates&catid=401)

### [John McKinney on What Separates the City Attorney Candidates](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33224:john-mckinney-on-what-separates-the-city-attorney-candidates&catid=401)

INTERVIEW - Voters will have a clear and defining contrast in the goals and objectives of the remaining general electio…

---

##  [ LOS ANGELES ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/066o.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33239:why-some-los-angeles-car-accident-claims-become-harder-to-prove&catid=312)### [Why Some Los Angeles Car Accident Claims Become Harder to Prove](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33239:why-some-los-angeles-car-accident-claims-become-harder-to-prove&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/066n.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33228:lausd-demolishes-closed-schools-wasting-public-assets-and-community-hopes&catid=312)### [LAUSD Demolishes Closed Schools, Wasting Public Assets and Community Hopes](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33228:lausd-demolishes-closed-schools-wasting-public-assets-and-community-hopes&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/066h.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33234:homelessness-among-seniors-spikes-in-los-angeles-county-but-its-not-hopeless&catid=312)### [Homelessness Among Seniors Spikes in Los Angeles County, But It’s Not Hopeless](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33234:homelessness-among-seniors-spikes-in-los-angeles-county-but-its-not-hopeless&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/065m.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33215:a-second-karen-bass-term-gets-her-and-us-four-more-years-of-well-earned-voter-outrage&catid=312)### [A Second Karen Bass Term Gets Her (and Us) Four More Years Of Well-Earned Voter Outrage](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33215:a-second-karen-bass-term-gets-her-and-us-four-more-years-of-well-earned-voter-outrage&catid=312)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/065l.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33216:the-cynicism-of-homelessness&catid=312)### [The Cynicism of Homelessness](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33216:the-cynicism-of-homelessness&catid=312)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>