Amassed Media: LA Times, Chicago Tribune Targeted for $815Mln Takeover

WASHINGTON (Sputnik) — A hostile takeover bid worth $815 million for two of the largest US regional newspapers has been publicly disclosed in an announcement by the USA Today newspaper owner Gannett on Tuesday.

Gannett disclosed its offer to buy the Tribune Publishing, which owns the Los Angeles Times, Chicago Tribune and nine other daily newspapers, after Tribune owners refused to discuss the offer in private, Gannett said in a letter to Tribune Chief Executive Officer Justin Dearborn that was released with the announcement.

"We are disappointed by the response we received from you in your letter of April 22, 2016 regarding our proposal to acquire all of the outstanding shares of Tribune Publishing Company ("Tribune") for an all-cash purchase price of $12.25 per share, and Tribune’s continued refusal to begin constructive discussions with us," the letter stated.

Gannett owns 108 US Newspapers and corresponding digital publishing assets as part of a newly created USA Today Network, a nationwide news organization, according to an article in Monday’s editions of the USA Today newspaper.

Tribune Publishing issued a statement following Gannett’s announcement, saying it is committed to the financial interests of its shareholders and would respond to the offer as quickly as feasible, USA Today reported.

Public disclosure of the buyout offer also raises the possibility that other companies will make competing offers to control Tribune Publishing by purchasing all of the company’s publicly traded stock.