Gannett bid for big newspaper tie-up rejected
The owner of the group that includes The Los Angeles Times on Wednesday rejected a takeover bid by rival Gannett to create a national newspaper powerhouse, saying it undervalues the publisher.
The $815 million bid "understates the company's true value and is not in the best interests of our shareholders," said a statement from Tribune Publishing, which owns the big Los Angeles newspaper as well as the Chicago Tribune, Baltimore Sun, Orlando Sentinel, Hartford Courant and other dailies.
The offer announced last month would combine the big metropolitan dailies with USA Today and its more than 100 publications around the United States.
Tribune Publishing owns the Los Angeles Times, Chicago Tribune, Baltimore Sun, Orlando Sentinel, Hartford Courant and other dailies ©David McNew (Getty/AFP/File)
Tribune Publishing chief executive Justin Dearborn said the company was carrying out its own strategic plan to adapt the company's newspapers to digital.
"Tribune Publishing is in the early stages of a compelling transformation, with a well-defined strategic plan to drive increasing monetization of our important brands, capitalize on the global potential of the LA Times and significantly accelerate our conversion of content to revenue through an enhanced digital strategy," Dearborn said.
"While the board is always open to evaluating any credible proposal that it believes to be in the best interests of the company and its shareholders, Gannett's opportunistic proposal understates the company's true value and is not a basis for further discussion."
Dearborn added that the company believes "our standalone strategic plan will generate shareholder value in excess of Gannett's proposal."
Tribune Publishing group was spun off the larger Tribune Co. in 2014, and has been examining options such as the sale of the coveted Los Angeles daily.
Earlier this year, it lost a bid for the Orange County Register after US antitrust officials objected to its merger with The Los Angeles Times, claiming it would have too much dominance in southern California.
Gannett last month said its Tribune offer had been rejected in private talks, but went public with its bid in an effort to win over the board.
Gannett last year became the latest media conglomerate to break itself apart, splitting off its television operations into a new firm called Tegna.
Gannett last year became the latest media conglomerate to break itself apart, splitting off its television operations into a new firm called Tegna ©Mark Wilson (Getty/AFP/File)
