Tribune Publishing Rejects McClatchy Takeover Offer

Tribune Publishing Co.’s talks over a potential takeover by McClatchy Co. have ended without a deal for the regional newspaper owner, according to people familiar with the matter.

Tribune Publishing rejected a fully financed cash-and-stock offer from McClatchy valuing the company at $16.50 a share, said the people, who asked not to be identified because the details aren’t public. Tribune Publishing is talking to other potential buyers, one of the people said.

Representatives for McClatchy and Tribune Publishing declined to comment.

Chicago-based Tribune’s shares rose as much as 5.3 percent Thursday. The shares then fell, closing down 1.5 percent to $13.58 in New York trading. The stock has dropped 23 percent this year, valuing the company at $484 million.

McClatchy’s offer included $15 a share in cash and the rest in stock, according to the people. Shares of the Sacramento, California-based company rose 6.5 percent to $8 on Thursday.

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Tribune Publishing Co. Chairman and Chief Executive Officer Justin Dearborn is handing the reins to one of his lieutenants, capping a tumultuous tenure that included deal talks and a name change.

Dearborn will be replaced as CEO by the newspaper company’s president, Tim Knight, the Chicago-based publisher said. Knight will also join the Tribune Publishing board. David Dreier, who’s been a director of the company since 2016, will take over the chairman role.


Dearborn was appointed CEO in 2016 and became chairman last year, putting him at the helm of a storied newspaper company struggling to adapt to modern realities. The publisher had changed its name to Tronc in 2016, aiming for a hipper moniker that reflected its push into digital media. But the name was widely ridiculed, and Dearborn changed the company back to Tribune Publishing last year.

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