Full Breakdown
Los Angeles Times Faces Cash-Flow Strain as Owner Pursues Public Offering
6/25/2026, 2:49:24 AM
Financial Delinquencies and IPO Ambitions
Owner Patrick Soon-Shiong, who bought the Los Angeles Times for about $500 million in 2018, is reportedly months behind on vendor and contractor payments. Simultaneously, he is seeking to raise up to $500 million to float the newspaper on the stock market.
Shift Toward Pro-Trump Coverage
Since 2018, Soon-Shiong has redirected editorial policy toward a Donald Trump-friendly stance, including a December 2024 internal memo limiting negative reporting of Trump and hiring conservative journalist Catherine Herridge for a weekly investigative series.
Key Players
Patrick Soon-Shiong (owner), Catherine Herridge (journalist), Decatur Holcombe (former senior VP of finance), David Rhodes (TV news executive), and the Los Angeles Times spokesperson are central to the financial and editorial developments.
Timeline of Recent Developments
- 2018: Soon-Shiong purchases the paper for ~$500 million.
- Dec 2024: Memo curtails negative Trump coverage.
- Nov 2025: Herridge hired; later reports months of unpaid invoices.
- 2025: Finance chief Holcombe resigns; sources flag cash-flow concerns.
- 2025: Plans announced to raise $500 million for an IPO.
Official Statements & Responses
The Times spokesperson told Status the company is “current on the majority of its payment obligations” and that payments are “overwhelmingly being made in accordance with contractual terms for all active accounts.” The spokesperson also said the report of Holcombe’s resignation over business concerns was inaccurate. No specific amounts owed have been disclosed.
Criticism & Opposition
Sources described a “penny-pinching” approach that led to late payments only being resolved after escalation to senior leaders or legal threats. Rhodes noted the recruitment offer included economy-class travel and use of the owner’s guesthouse, which he suggested may have influenced his decision to decline the role. Staff expressed alarm over the cash-flow situation.
Conflicting Reports & Gaps
The spokesperson’s claim of being “current on most of what it owes” conflicts with multiple accounts of months-long payment delays and unpaid contracts. Precise figures for overdue amounts and a detailed schedule of missed payments have not been provided.
Verbatim Quotes
- “The Times is current on the majority of its payment obligations, and payments are overwhelmingly being made in accordance with contractual terms for all active accounts,” — Times spokesperson
- “Any assertion that I resigned from the company over concerns about the state of the business is completely false,” — Decatur Holcombe, former senior VP of finance
- “That might be why I didn’t take the job,” — David Rhodes, TV news executive
- “thrilled” to join. — Catherine Herridge, journalist
Implications and Next Steps
The cash-flow strain jeopardizes newsroom operations and may undermine confidence in the paper’s editorial direction. The success of the planned $500 million IPO will depend on resolving payment issues and restoring financial stability.
