David Pecker of American Media LLC, the executive who oversaw the tabloid National Enquirer and was an ally of President Trump during the last election, will step down as head of the company as part of a merger deal.
American Media will be merged with Accelerate360 LLC, a logistics company, and will be renamed A360 Media, according to a statement Friday. Pecker, who was president and chief executive officer, remains as executive adviser.
A360 Media will focus on its portfolio of famous magazines such as Us Weekly, OK! and Life & Style. The company agreed to sell the National Enquirer to Hudson Media last year, although the parties have not announced that this deal is ready. Hedge fund Chatham Asset Management is the main owner of American Media, as well as a backer of Accelerate360.
Pecker, 68, has been friends with Trump for years, and he struck up an immunity action with federal prosecutors as part of an investigation into the president’s former personal lawyer, Michael Cohen. The company has entered into a related agreement with non-prosecution that included crimes, including perjury and obstruction of justice.
The deals stem from the company’s alleged efforts to help Trump by buying the rights to stories that could potentially harm damage and refusing to publish them, a practice known as “capture and kill.”
The Enquirer and its owner came under more scrutiny after Amazon.com Inc. founder Jeff Bezos accused American Media of trying to seduce him with photos of him with a woman who was not his wife. To support the claims, he published emails sent by American administrators to his lawyer.
The controversy defeated Chatham, who was asked by New Jersey officials about the situation. The company also came under control by security regulators.
A360 Media has plans to keep its headquarters in New York, but some operations will move to the Accelerate base in Georgia.
