Like plenty of media outlets worldwide, the Los Angeles Times has been hit hard due to the coronavirus pandemic. Advertisement revenue decreased in the last year, and so the Times received a $10 million Paycheck Protection Program (PPP) loan to fill the gap for the lack of ad revenue.
After advertisers pulled their advertising last year, it dealt a financial blow to the newspaper. The Hillreports that Times will use the money from this loan to cover employee payroll and benefits.
“The money will be used almost exclusively for employee-related costs, including payroll and employee benefits,” said Chris Argentieri, president and COO of the California Times, the newspaper’s parent company.
“We lost tens of millions of dollars in advertising revenue pretty much instantly in March 2020, and the pandemic continues to take a toll on the public health and take a toll economically. We are still operating with great uncertainty.”
Last month, a Wall Street Journal report stated that Patrick Soon-Shiong, the Times owner, considered selling The Times and the San Diego Union-Tribune. However, Soon-Shiong denied the report.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
