×
You will be redirected back to your article in seconds

Gannett Raises Offer for Tribune Company

UPDATED: Gannett Company isn’t giving up on its ambitions to buy Tribune.

The newspaper giant raised its offer to acquire the company behind the Los Angeles Times and the Chicago Tribune on Monday, after its initial bid was rejected by Tribune’s board of directors.

Gannett, which counts USA Today, The Des Moines Register and the Detroit Free Press among its holdings, said it is prepared to offer $15 per share, up from its earlier $12.25 bid. The pitch values Tribune at just under $480 million, and would include the assumption of approximately $385 million of the publisher’s debt. That raises the value of the potential pact to $864 million. Gannett said the revised offer is a 99% premium on Tribune’s closing price of $7.52 per share on April 22, the last trading day before the company publicly announced its initial offer for Tribune.

The richer offer will put pressure on Tribune’s leadership. In rejecting the proposal, Tribune CEO Justin Dearborn called the Gannett’s pitch “opportunistic” and said the company was in the early stages of executing a plan to make itself more global and digital, and consequently more profitable. However, some shareholders, such as Southern California-based Oaktree, have urged Tribune to at least explore a sale.

In another attempt to force a Tribune sale, Gannett sent an appeal directly to Tribune’s shareholders, asking them to withhold their votes for members of the company board in a vote set for June 2. Such a move ” would send a clear signal that you, as a Tribune stockholder, want your Board to engage in a meaningful dialogue with us regarding a possible business combination between our two companies,” according to a proxy statement filed with the SEC Monday.

Chicago-based Tribune Publishing issued a statement promising to “thoroughly review” the latest offer from Gannett, the largest newspaper publisher in America, by circulation. Tribune said it was getting financial advice from Goldman, Sachs & Co. and Lazard and legal advice from Kirkland & Ellis LLP.

James Rainey contributed to this story.

More Biz

  • AMC TheatresShop signs, Los Angeles, America

    AMC Theatres Accused of Firing VP Who Complained of Gender Pay Gap

    A former vice president at AMC Theatres filed a federal lawsuit on Wednesday, accusing the company of firing her after she complained that she was paid far less than her male peers. Tonya Mangels, who was vice president of product marketing, said that in March 2018 her supervisor inadvertently sent her a spreadsheet that included [...]

  • Johnny Depp

    Johnny Depp Trial Over Location Manager's Assault Suit Delayed to May

    Update: On Wednesday afternoon, Judge Holly Fujie ordered the trial postponed. A new trial date was set for May 11, 2020. Johnny Depp is expected to appear in a Los Angeles courtroom next week for a trial on a lawsuit alleging that he punched a location manager during the 2017 shoot for “City of Lies.” [...]

  • Stranger Things Season 3

    Netflix Undershoots U.S. Subscriber Adds for Q3, Beats Profit Forecast

    Netflix fell slightly short of its U.S. subscriber forecast in the third quarter — and projected lower Q4 subscriber growth than Wall Street was expecting as competition looms from Apple and Disney. Still, the company reported solid gains, announcing a Q3 record for paid subscriber additions and revenue, and handily topped analyst forecasts for profit. [...]

  • Despacito Luis Fonsi Daddy Yankee

    'Despacito' Tops Vevo's Most-Watched Videos of the Past Decade Chart

    In celebration of its 10-year anniversary, Vevo today announced its Top 10 lists of the decade’s most-watched music videos. Not surprisingly, the Most-Watched Music Video accolade goes to Luis Fonsi’s “Despacito” (featuring Daddy Yankee), with 6.4 billion views since its release in early 2017. The second most-viewed video is Mark Ronson’s “Uptown Funk” (featuring Bruno [...]

  • MoviePass card

    MoviePass Accused of Contract Breach by Oasis Ventures

    Oasis Ventures Entertainment, a Dubai-based investment fund, sued MoviePass on Monday, alleging that the loyalty-card company stole film titles to create its film unit. Oasis has had a joint venture with action movie producers Randall Emmett and George Furla since 2013. In 2018, Emmett Furla Oasis went into business with Helios and Matheson Analytics, the [...]

  • The Laundromat Netflix

    'Panama Papers' Attorneys Sue Netflix to Block Release of 'The Laundromat'

    The lawyers at the heart of the “Panama Papers” scandal have filed a federal suit seeking to block Netflix from releasing “The Laundromat,” the Steven Soderbergh film that stars Meryl Streep. Jurgen Mossack and Ramon Fonseca, the principals of Mossack Fonseca, allege that the film defames them and uses their firm’s logo without authorization. In [...]

More From Our Brands

Access exclusive content