By: The News Staff of Georgia Weekly Post.
Gannett announced an offer to buy Tribune Publishing, publisher of the Chicago Tribune, for $815 million, including the assumption of $390 million in debt.
The all-cash offer, which translates to $12.25 a share, represents a 63 percent premium over Friday's $7.52 a share closing price, as well as a premium over the $8.50 share price at which Tribune recently issued common shares, Gannett said.
▲ The Tribune Tower in Chicago. Gannett announced an offer to buy Tribune Publishing, publisher of the Chicago Tribune, for $815 million, including the assumption of $390 million in debt.
Gannett noted in a news release that the all-cash value of the transaction meant it could be completed quickly and in releasing a letter addressed to Tribune Publishing CEO Justin Dearborn, said it was "disappointed by the response" in a Friday letter from Dearborn regarding Gannett's proposal.
"We believe the financial and strategic logic of a combination of our two companies is clear," said a letter to Dearborn today from Gannett and Robert Dickey, president and CEO, that Gannett released to the media.
"The challenges for our industry in the digital age continue," he added.
"Tribune has itself faced numerous challenges and leadership changes over the last few years. We believe Gannett is uniquely willing and able to propel Tribune into the position of strength that will allow its beloved and historic publications and other assets to survive and thrive in this challenging environment. By combining, we would create a company with the financial stability and flexibility equipped to preserve journalistic integrity, high standards and excellence for years to come. We would be able to both empower our journalists and facilitate the creation of exceptional content while delivering stockholder value," he said.