Daily Herald finalizes sale to Tribune Publishing

It was more than a century ago that Hosea C. Paddock created a bold mission statement for his fledgling Cook County newspaper, “Our aim: To fear God, tell the truth and make money.”

It was his motto, anchored each day at the top of the opinion page of the Daily Herald, that was a guiding force for four generations of Paddocks who grew the weekly Cook County Herald into the Daily Herald, the third largest newspaper in Illinois. While the Paddock family sold its interest in the newspaper to employees under an Employee Stock Ownership Plan (ESOP) in 2018, the mission of the newspaper has never changed — a commitment to principled, ethical and honest journalism, with a need to remain profitable to allow the newspaper to thrive.

On Monday, the ownership of the Daily Herald was passed along again, this time to Tribune Publishing, owners of the Chicago Tribune.

“We are pleased that ESOP participants voted by a substantial margin in favor of the sale to Tribune Publishing,” said Douglas K. Ray, CEO, chairman and publisher of Paddock Publications Inc., the parent company of the Daily Herald. “As an employee-owned company, a pass-through vote was required in order to direct the trustee for final approval.”

The Daily Herald will continue publishing seven days a week and readers can continue to rely on DailyHerald.com for timely news coverage and updates.

After receiving a favorable vote from its shareholders, Paddock finalized the sale of the newspaper today. In buying the Daily Herald, Tribune Publishing extended offers of employment to all Daily Herald employees.

“I know the board takes pride in the increasing stock valuation that has created retirement nest eggs for participants,” said Ray. “The combination of the Tribune’s commitment to hire all Daily Herald employees and the smooth transition bodes well for the future.”

The sale is another beginning for the newspaper, purchased by Hosea Paddock in 1898 for $175. The newspaper was first published in 1872. Over the years, Paddock opened a series of newspapers in the suburbs, with all converging into the Daily Herald in 1977, eventually serving Cook, DuPage, Kane, Lake and McHenry counties.

Monday’s sale ended nearly a year of discussion, negotiation and consideration on whether selling the profitable newspaper operation now was in the best interest of ESOP participants. While the newspaper was never offered for sale, Paddock received an unsolicited offer from another newspaper publisher last summer and the company was required to consider the offer because of ESOP fiduciary obligations. Tribune Publishing then came forward with an offer and in the end became the winning bidder.

“I am confident that the Daily Herald, even though under new ownership, will continue to be one of the finest community newspapers in the United States,” said Ray. “As I have said many times, a newspaper is only as good as the staff who produces it. The Tribune is getting the best in the business.”

Paddock Publications Inc. will continue as an employee-owned ESOP, based in Schaumburg, and will focus on its niche publishing business, Town Square Publications, and a group of weekly newspapers in downstate Illinois.