(Photo credit: ChicagoBuisness.com)
In the world of print news publishing more and more advertisers are pulling away.
A potential generous merging/buyout would be ideal to stay afloat. But not for Tronc, formerly known as Tribune Publishing.
Gannett, a major media and marketing company, which owns about a hundred news outlets including USA Today has tried to buy Tronc (LA Times, Chicago Tribune) for months, but Tronc declined the $425 Million deal.
Recently, Gannett terminated its pursuit of the Tronc deal. According to a statement released by Gannett C E O Robert Dickey, the terms of the deal were “not acceptable.”
“While we have great respect for the Tronc employees and properties, and while we believe that the acquisition would have provided an attractive opportunity to expand the USA Today Network quickly, in the end the terms were not acceptable,” Dickey said in a memo to his employees.
Print News companies have been struggling for years to gain ad dollars and readership.
In the era of new technology, more and more news consumers are getting their news fix electronically, causing stiff competition in the printing news business.
According to reports, Gannett had mediocre earnings last quarter. The intended buyout deal would have been a powerful combination, bringing in more advertising dollars and readership.
The deal would have made Gannett one of the largest media groups in the country.