The risk of Tronc’s ‘just say no’ defense against Gannett’s bid: If Gannett doesn’t acquire Tronc, the company could be left to wither

“If [Michael] Ferro’s goal in resisting was to push up Gannett’s price, then he is doing a masterly job,” Steven Davidoff Soloman writes of Tronc’s “just say no” defense to Gannett’s bids thus far. “‘Just say no’ as a defense is a gamble. It depends on how steely the management and board are and what the decision means for the future. There is a negotiating element to this — adopting a ‘just say no’ defense leaves no doubt that Tronc has succeeded in getting more potential money. The risk in this strategy is that Gannett goes away instead of acquiring Tronc, leaving the company to wither like Yahoo or find its own path to success.”