What To Know About Tribune Publishing's New $680M Acquisition Bid

Tribune Publishing Company TPCO has acknowledged the receipt of a $680 million acquisition proposal from Newslight LLC, a joint venture owned by Stewart W. Bainum Jr., chairman of Choice Hotels International Inc CHH and Hansjörg Wyss, the former CEO of the medical device manufacturer Synthes.

What Happened: The hedge fund Alden Global Capital, which owns roughly 32% stake in Tribune Publishing, had planned to purchase all of its newspaper assets and then sell the Baltimore Sun and two smaller Maryland newspapers for $65 million to a nonprofit controlled by Bainum. When Bainum and Alden Global could not reach a mutually satisfactory deal, Bainum began exploring the direct purchase of the company.

The Newslight proposal involves the acquisition of the outstanding shares of Tribune common stock for $18.50 per share in cash, a level greater than Alden Global’s $17.25 per share offer.

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What's Next: In a press statement, Tribune Publishing insisted the “Alden merger agreement remains in full force and effect, and the Tribune Board has not determined that Newslight's proposal in fact constitutes a ‘Superior Proposal.’”

Alden Global has four business days to match the NewsLight offer – if a new offer is not put forth, the hedge fund can receive a $20 million breakup fee from Tribune Publishing, according to filings with the U.S. Securities and Exchange Commission.

Why It Matters: Tribune Publishing has media operations in eight markets and its best-known publications include the Chicago Tribune, New York Daily News, The Baltimore Sun, Hartford Courant and Orlando Sentinel.

According to a Chicago Tribune report citing an unnamed source, a successful Newslight acquisition would result in Bainum owning the Baltimore Sun, Wyss take over the Chicago Tribune and the other newspapers being sold to either individual or group owners.