The Gannett Co. said Tuesday it is abandoning an effort to buy tronc, the publisher of the Los Angeles Times and seven other large metro newspapers.
Gannett, the largest U.S. newspaper company and publisher of USA Today, made an unsolicited bid to purchase tronc in April amid the newspaper industry’s continuing consolidation.
According to the New York Times, Gannett said that the acquisition was an attractive opportunity but “in the end the terms were not acceptable.”
Shares of tronc, formerly known as Tribune Publishing, were down nearly 20 percent in early trading on Wall Street. Gannett shares rose 1 percent.
The Chicago-based company said it “had serious doubts about Gannett’s ability to finance a transaction that was in the best interest of tronc’s shareholders and other stakeholders” but had nevertheless pursued the deal.
“The board and management team of tronc remain committed to taking the necessary steps to transform its business in response to the massive changes that have overtaken the publishing industry, supporting the company’s outstanding journalists and, above all, delivering value to shareholders,” tronc said in a statement.
In addition to the Union-Tribune, tronc owns the San Diego Union-Tribune and Chicago Tribune.