Tribune Declines Gannett's Takeover Offer Despite Company 'Getting Weaker'

Tribune Publishing Co (NYSE: TPUB), a multi-platform media and marketing solutions company, received an offer on April 12 from Gannett Co Inc (NYSE: GCI) to fully acquire the company at a price of $12.25 per share.

Related Link: Tribune Publishing Confirms Unsolicited Offer From Gannett

On Thursday, Tribune Publishing responded to the offer and said that Gannett's offer "understates the company's true value and is not in the best interests of its shareholders."

"Tribune Publishing is in the very early stages of an exciting and compelling strategic transformation," the company also said in a letter delivered to Gannett. "Today we announced full-year 2016 Adjusted EBITDA guidance of $166–172 million and a 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."

Journalism Pro: 'Tribune Is In A Weak Financial Position And Getting Weaker'

John K. Hartman is an emeritus professor of journalism at Central Michigan University and a media consultant. Speaking to Benzinga, the expert suggested that Tribune is in a "weak financial position and getting weaker."

Hartman added that Tribune Publishing is unlikely to receive serious bidders from other media players to acquire its collection of metropolitan legacy newspapers. However, he did suggest that Gannett could raise its bid – albeit "slightly."

"Previously, Gannett would only make friendly acquisitions of willing partners," he added. "This apparent attempt at a hostile takeover is new ground for Gannett and suggests that its leaders believe completing this acquisition is essential to the growth and prosperity of the company and fits its strategy of expanding the USA Today Network to a much wider audience."