Here’s a bold statement: One of America’s oldest newspapers is betting its future on a high-stakes gamble, and it’s not just about ink and paper anymore. The Los Angeles Times, under the stewardship of billionaire owner Dr. Patrick Soon-Shiong, is laying the groundwork for a potential public offering in 2027, but the journey is anything but straightforward. And this is the part most people miss: despite its storied 144-year history, the paper reported a staggering $48 million net loss before taxes in 2024. So, what’s the plan to turn things around? Let’s dive in.
In a recent pitch to investors, the Times candidly admits, “We have incurred operating losses in the past, may incur operating losses in the future, and may not achieve or maintain profitability in the future.” This isn’t just boilerplate corporate language—it’s a stark reminder of the challenges facing legacy media. But Soon-Shiong isn’t backing down. Since acquiring the paper from Tribune Co. in 2018, he’s poured $750 million into the business, which now employs 615 full-time staffers and boasts 500,000 paying subscribers across print and digital platforms.
But here’s where it gets controversial: while the Times generated $237.5 million in total revenue last year, its print advertising ($35.5 million) outpaced digital advertising ($24.4 million). In an era where “print dollars to digital dimes” is the prevailing wisdom, this seems counterintuitive. Yet, the Times is doubling down on a hybrid model, blending its traditional strengths with new ventures like LA Times Studios, a streaming news channel, and even esports production through Nant Games. Is this a visionary strategy or a risky gamble? We’ll let you decide.
The pitch deck highlights the Times’ “credibility core” as its cornerstone, but it’s the diversification that’s raising eyebrows. Soon-Shiong is bundling in his Nant Studios, offering cutting-edge production facilities, and even eyeing a technologically advanced medical journal—a nod to his biotech roots. Then there’s “Archive Intelligence,” a plan to digitize 12 million articles and leverage AI for monetization. Speaking of AI, the Times is already experimenting with AI-generated insights and summaries, though it admits these tools can sometimes produce “output errors or inaccurate analysis.” Is AI the savior of journalism, or a double-edged sword?
Meanwhile, the paper’s unionized employees voted to authorize a strike on October 9, after nearly three years without a new collective bargaining agreement. The filing notes ongoing negotiations, but the tension underscores the broader challenges of balancing tradition with innovation. The Times aims to expand its reporting in Washington and Sacramento, build production facilities in D.C., and even establish a presence on the NYSE floor. But with a strike looming and a complex revenue mix, the road to IPO is anything but smooth.
Here’s the burning question: Can a 144-year-old newspaper reinvent itself for the digital age while staying true to its roots? And is Soon-Shiong’s ambitious vision enough to convince investors—and readers—that the Los Angeles Times still has a story worth telling? Let us know what you think in the comments below.
