With a bid more than 60 percent higher than Tribune’s trading value, Gannett will likely succeed in acquiring Tribune Publishing
You might have heard: Gannett offered $815 million in cash to buy Tribune Publishing, and Gannett CEO Robert Dickey says, “Given the substantial value represented by our offer … we are confident that Tribune’s non-management stockholders will support our proposal” (CNN Money)
But did you know: Though Tribune management was surprised by Gannett’s takeover bid, Rick Edmonds writes that Gannett is likely to succeed in acquiring Tribune Publishing. Gannett’s bid of $815 million is 60 percent more than Tribune’s trading value, and Tribune’s board is obligated to accept the offer unless it has another viable alternative for increasing trading value. On Monday morning, Tribune’s stock was trading 55 percent higher than its closing price on Friday, which Edmonds writes is a sign that Wall Street says a takeover is likely to happen.
+ A takeover of Tribune would increase Gannett’s circulation to about 62 million from 45.5 million, but it remains to be seen whether Gannett knows what to do with Tribune’s big metro papers (Nieman Lab)
+ Gannett’s $815 million bid shows that no one knows what the value of a print newspaper is anymore, Noah Kulwin says (Re/code)