Editor’s note the bidding war for Tribune by Gannett Company (GCI) continues. This morning Gannett raised its offer to buy Tribune to $15. According to Barron’s Oaktree Capital has urged Tribune Publishing to merge with Gannett and that could be part of the reason the bid was raised this morning.
After the initial bid GAMCO noted:
Gannett has consistently said it would be a consolidator in the newspaper industry. While the size and speed of this proposed deal may be surprising (we thought GCI might bid for a smaller publisher), the turnover in TPUB’s C-suite, TPUB’s price performance and ownership changes provided an opportunity for GCI.
Beyond cost savings, we see revenue opportunities as well. The combined company would have a true national newspaper platform reaching about 17% of US circulation and making it advantageous for national marketers. Tying the TPUB’s papers to USA Today and combining digital efforts have potential as well.