Gannett, to Tronc: How about NO!

Public Domain image

Public Domain image

The following excerpt comes from today’s Morning Media NewsFeed from AdWeek:

After months of “will they” “won’t they” speculation attached to stories about Gannett’s pursuit of Tronc, Gannett has issued a final “won’t they.” In a statement, Gannett said it “has determined not to pursue an acquisition of Tronc.” (FishbowlNY)

Shares of Tronc fell precipitously in early market trading Tuesday, down 19.7 percent. Gannett’s shares, meanwhile, were up 1.9 percent. (Poynter / MediaWire)

The deal was intended to build a scale large enough to cut costs and eke out profits in an industry struggling with shrinking advertising revenue and declining circulations. But late last week, Gannett’s latest quarterly earnings spooked the banks that had agreed to finance the deal, people briefed on the matter said. (NYT / DealBook)

Tronc previously rejected an increased takeover offer by Gannett but agreed to hold further talks about a potential transaction. It earlier in the year also adopted a so-called “poison pill” provision to fend off hostile takeover attempts. Gannett’s original takeover offer was for $12.25 per Tronc share in cash, or $815 million. (THR)

Tronc’s executive chairman Michael Ferro had fought against a possible sale to Gannett, changing the company’s name from Tribune Publishing to Tronc and telling shareholders investments in artificial intelligence and other technological initiatives would improve the company’s value without a sale to Gannett. (Politico Media)

This entry was posted in Chicago Tribune, Gannett, Los Angeles Times, Newspaper industry. Bookmark the permalink.

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