It’s official. Tribune Publishing today announced they have entered into a merger agreement with Alden. Alden will acquire all of the outstanding shares of Tribune common stock not currently owned by Alden for $17.25 per share in cash.
In a release, Tribune says Alden currently owns 11,554,306 shares of Tribune common stock, representing 31.6% of the Company’s outstanding shares.
The purchase price represents a premium of 45% to the closing price of Tribune stock on December 11, 2020. That was the last trading day prior to receiving Alden’s proposal.
Approved By Special Board Committee
Tribune’s Board of Directors had created a special committee to evaluate Alden’s proposal and alternatives. That committee approved this deal.
“Over the past year, the Company has taken a number of actions to adapt to an ever-changing business and industry environment, including the impact of COVID-19. These actions included strengthening the Company’s financial position, driving digital growth and investing in high-quality content to better serve customers, employees and communities. This positioning enabled the special committee to negotiate a premium, all-cash price, which the committee concluded was superior to the available alternatives.”
Philip G. Franklin, Chairman of the Board and a member of the special committee
Baltimore Sun to be Sold
Alden has signed a “non-binding term sheet” to sell The Baltimore Sun to Sunlight for All Institute, a public charity formed by Stewart Bainum Jr.
Approvals and Timing
The companies expect to close in Q2 2021. After completion of the deal, Tribune will become a privately held company.
Stronger Together
Alden owns MediaNewsGroup, which operates 200 publications. Titles include the Denver Post, Mercury News, Orange County Register and Boston Herald.
Tribune, briefly known as tronc, is a media company which owns local media businesses in eight markets. Tribune newspapers include the Chicago Tribune, New York Daily News, and Orlando Sentinel.
Together, Tribune and Alden would control media properties in half of the top 10 markets in the United States. This includes the three biggest media markets in the country, New York, Los Angeles and Chicago.
