Tribune Publishing Shares Rise After Rejection of Gannett Offer

Early market reaction to turn-down of $815 million is positive.

TPub_05_04Profits are down and share prices are moving up in after-hours trading. That, in a nutshell, sums up a crazy day of Tribune Publishing news.

In short order this afternoon, the Chicago newspaper division shared its first-quarter results and announced that its board had unanimously rejected an unsolicited $815 million bid from Gannett:

“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,” said CEO Justin Dearborn. “While the Board is always open to evaluating any credible proposal that it believes to be in the best interests of the Company and its shareholders, Gannett’s opportunistic proposal understates the Company’s true value and is not a basis for further discussion. The Board is confident that the execution of our standalone strategic plan will generate shareholder value in excess of Gannett’s proposal.”

During the Q1 earnings that followed, Dearborn outlined a few more details about that transformation, revealing that the company plans to open L.A. Times bureaus next year in Mexico City, Rio de Janeiro, Mumbai, Lagos, Moscow, Seoul and Hong Kong. For reporters and editors at Tribune papers, May 4 was just another topsy-turvy day at the office. By comparison, Tribune Media Company shares are currently at around $38.00.

Image via: Yahoo Finance