The Washington Post reports that investors backing the takeover pulled out when they saw data displaying a decrease in Gannett’s Print advertising revenue.
Tronc had already rejected two bids from Gannett prior to this, but a spokesman from Gannett said that they had the finances to pay for the merger but that terms he described as “not acceptable” proved to be a barrier to the deal.
Tronc has, according to The Washington Post, been slow to break into digital advertising, and the failing merger dropped Tronc’s stock price 12% and Gannett’s 2%. However, these events will most likely not sway the merger from happening in the future.
Michael Kupinski, who is an analyst at Noble Financial Capital Markets, said about the possibility of a future merger:
“Gannett has been viewed as the consolidator in the industry … and if there is an opportunity to get back to look at (Tronc) again, I think they will.”
Gannett, headquartered in Tysons Corner, is the largest publisher of newspapers in the country in terms of daily circulation. Keeping print companies busy since it was founded in 1906, its acquisitions this year alone include Golfweek, Journal Media Group, North Jersey Media Group, and ReachLocal.
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