Tribune Rejects Gannett’s Offer, Adopts “Poison Pill”

What: Tribune Publishing board of directors rejected USA Today owner Gannett's US$815 million offer to acquire the company. In addition, Tribune adopted a "limited duration Shareholder Rights Plan." Under the plan, known as "Poison Pill" in financial circles,  Tribune's shareholders can double their holdings in the event that another party — in this case Gannett — acquires more than 20 percent of the company.
Why it matters: Tribune Publisher, owner of Los Angeles Times, Chicago Tribune and nine other daily newspapers, said Gannett’s "opportunistic" proposal understates the company’s true value and is not in the best interests of its shareholders. A potential acquisition, would make Gannett's position, already the largest newspaper publisher in the U.S., even more hegemonic.

7slgoGr4_400x400 descargaTribune Publishing's board of rejected USA Today owner Gannett's US$815 million "opportunistic"offer to buy the company, arguing the proposal understates the company’s real value and is not in the best interests of its shareholders.

In addition, Tribune disclosed that its board has adopted a "limited duration Shareholder Rights Plan." Under the plan, Tribune's shareholders can double their holdings in the event that another party — in this case Gannett — acquires more than 20 percent of the company.In common corporate parlance, that's a "poison pill," a way to essentially protect corporate insiders from shareholder activism (like Gannett's intent to buy Tribune).

Tribune publishing is the owner of  Los Angeles Times, Chicago Tribune and nine other daily newspapers.Gannett wanted to buy Tribune Publishing with the view of expanding its Network and uniting USA Today with its more than 100 local daily newspapers.

Last month, Gannett offered US$12.25 in cash for each Tribune share plus the US$390 million Tribune's debt, bringing the total value of the bid to us$815 million. The owner of USA Today publicly announced the proposal two weeks after unsuccessfully making a private offer.

On the other hand, Tribune  is in the midst of  an strategic plan that includes creating digital subscription services and expanding the LA Times brand globally, which will include opening seven international bureaus this year, including outposts in Hong Kong, Seoul and Mexico City..In addition, the publisher plans to break out the Times' revenue and profit as a separate segment from the rest of the company, which could boost the sale price and put pressure on Gannett to raise its offer.

"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 in a statement Wednesday.

"Tribune Publishing’s board has unanimously determined that Gannett’s opportunistic proposal understates the company’s true value and is not in the best interests of its shareholders," Tribune said in a statement.


Join us at the 2017 Sports Marketing Forum.. The first day of #Portada17 (Sept. 13, 2017 in NYC) will be all about Sports Marketing and insights and best practices on how best to use sports content to connect with the exploding multicultural demographic!

 

 


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
El equipo editorial de Portada se apasiona por elaborar contenidos de alta calidad. La credibilidad es nuestro mayor activo. La misión de Portada es ayudar a profesionales de negocios y medios a comprender y alcanzar a consumidores latinoamericanos, del mercado hispano de EE UU y España.

MORE FROM PORTADA

Tinder Explores Video, Acquires Video Startup Wheel

Tinder Explores Video, Acquires Video Startup Wheel

Tinder announced an agreement to acquire Snapchat-style video startup Wheel.


¡Suscríbete a los boletines de marketing deportivo, video, marketing turístico e innovación!

Portada está expandiendo de manera significativa su cobertura en las aéreas descritas abajo. Asegúrate de obtener noticias frescas y la inteligencia que elabora el equipo editorial de Portada. ¡Por favor, tilda los tema(s) de los que quieras recibir información!


NewsWhip Raise $6.4 million from Tribal Ventures, AP and Cantor Fitzgerald

NewsWhip Raise $6.4 million from Tribal Ventures, AP and Cantor Fitzgerald

Content analytics firm NewsWhip has raised a US$6.4 million Series A funding round led by Tribal Ventures, with participation by The Associated Press, clients of Cantor Fitzgerald, The Asahi Shimbun and existing investors.Series A Funding Round Will Be Used to Develop the Company’s Data-Driven Storytelling Technology for Leading Newsrooms and Agencies.