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takyon writes:

A deal that would have expanded the U.S.'s largest newspaper publisher has fallen apart:

Gannett, owner of USA TODAY and more than 100 local news properties, said Tuesday it has ended its pursuit of Tronc, owner of The Los Angeles Times, an acquisition that would have created the country's largest newspaper publisher. In a statement, Gannett CEO Robert Dickey said the deal would no longer make financial sense to complete. Tronc said the talks fell through because Gannett couldn't secure financing.

The news has not helped Tronc's stock:

Gannett's stock rose 0.7% to $7.83 in morning trading as Tronc shares fell 19% to $9.75. The news that a deal is off comes after The Wall Street Journal reported in August that Gannett had privately sweetened its bid for Tronc, which in May rejected a boosted $15 a share offer. Gannett first made a bid for Tronc in April, when it was then called Tribune Publishing.

A transaction would have been the latest amid a flurry of newspaper deals. Gannett has been seeking to build scale in a newspaper industry suffering from steep declines in advertising revenue. A combined company would have joined titles such as Gannett's USA Today with the Chicago Tribune and Los Angeles Times. Gannett's public offers were fiercely and publicly rebuked by Tronc Chairman Michael W. Ferro Jr., who repeatedly said the company is worth more than Gannett was willing to pay. Mr. Ferro and Chief Executive Justin C. Dearborn announced a rebranding effort amid Gannett's pursuit, and Mr. Ferro asked investors to believe in his course for Tronc as a stand-alone, more digitally-focused company.

Also at NYT and Bloomberg.

[Tronc — Tribune Online Content, according to: Tribune Publishing Just Changed Its Name to ‘tronc’ - WSJ. -Ed.]

Original Submission

1. "takyon" - https://soylentnews.org/~takyon/
2. "fallen apart" - http://www.usatoday.com/story/money/2016/11/01/gannett-terminates-pursuit-tronc/93105908/
3. "not helped Tronc's stock" - http://www.wsj.com/articles/gannett-abandons-its-attempt-to-buy-tronc-1478004408
4. "privately sweetened its bid for Tronc" - http://www.wsj.com/articles/gannett-sweetens-bid-for-chicago-tribune-parent-tronc-1471485099
5. "NYT" - http://www.nytimes.com/2016/11/02/business/dealbook/gannett-drops-tronc-bid-tribune.html
6. "Bloomberg" - http://www.bloomberg.com/news/articles/2016-11-01/gannett-walks-away-from-deal-to-buy-la-times-publisher-tronc
7. "Tribune Publishing Just Changed Its Name to ‘tronc’ - WSJ" - http://www.wsj.com/articles/tribune-publishing-just-changed-its-name-to-tronc-1464903778
8. "Original Submission" - https://soylentnews.org/submit.pl?op=viewsub&subid=16713

printed from SoylentNews, Gannett Ends Pursuit of Rival Newspaper Publisher Tronc on 2023-06-21 13:47:34