Billionaire investor Ron Burkle is in talks to acquire the National Enquirer, the New York Times reported, potentially putting a high-profile Democratic Party donor in charge of a tabloid with ties to President Donald Trump.
The two sides are deep in discussions, though the talks aren’t yet final, the Times said, citing unidentified people familiar with the negotiations. When reached by Bloomberg Wednesday night, a spokesman for Burkle denied that the billionaire was buying the Enquirer.
Embattled publisher American Media LLC announced that the 93-year-old tabloid was for sale on Wednesday, following accusations of extortion by billionaire Jeff Bezos this year and an earlier flap over killing embarrassing stories about Trump. A heavy debt load has put an additional burden on the company. And despite being a staple of supermarket checkout aisles for decades, the Enquirer has suffered a decline in circulation.
Leon Cooperman, an investor in American Media, said he believes an unspecified buyer is interested in making the deal. If Burkle does ultimately agree to the purchase, it would put the publication in the hands of a Democratic fundraiser famous for his friendship with Bill Clinton.
Burkle, who controls Yucaipa Cos., made his fortune in the grocery-store industry, where the Enquirer generates much of its revenue.
A sale would help ease the pressure on American Media, Chief Executive Officer David Pecker and the company’s hedge fund backers. Chatham Asset Management is the principal owner of the publisher, and two of the firm’s executives serve on its board. Cooperman, a billionaire hedge fund manager, has said that his stake is relatively small.
Chatham, run by Anthony Melchiorre, has grown increasingly disgusted with the reporting tactics at the Enquirer and pushed for the sale, according to the Washington Post.
‘Near Future’
American Media’s board conducted a review of its tabloid business, including the Globe and National Examiner brands, and decided to explore strategic options. That will “likely result in their sale in the near future,” the company said on Wednesday.
“We feel the future opportunities with the tabloids can be best exploited by a different ownership,” Pecker, who also serves as chairman, said in a statement.