Gannett offers $815 million to buy Los Angeles Times and Tribune
NEW YORK (CNNMoney) — Gannett wants to buy fellow newspaper owner Tribune Publishing.
On Monday, Gannett went public with a bid, saying its initially private entreaties had been rebuffed.
Gannett has offered to pay roughly $815 million for Tribune, at $12.25 a share, which is a 63% premium based on Tribune’s closing price of $7.52 a share on Friday.
Tribune jumped up more than 2.5% in early trading. The company did not have any immediate comment about Gannett’s proposal.
The merger would unite two big but troubled newspaper operators.
Tribune Publishing owns the Los Angeles Times, Chicago Tribune, Baltimore Sun, and other daily newspapers.
Gannett owns USA Today, the Detroit Free Press, Des Moines Register, Cincinnati Enquirer, and more than 100 other smaller local media brands.
Both Gannett and Tribune used to have big television station operations too, but the newspaper divisions were spun off as their own companies. So now the paper owners are more exposed in an increasingly difficult media climate.
Gannett has been seeking to get bigger. Earlier this year the company acquired Journal Media Group, which includes the Milwaukee Journal Sentinel and The Commercial Appeal of Memphis.
WQAD News 8 is owned by Tribune Media.