The world of big cap publishing was under the spotlight on Tuesday as giant Gannett Co Inc (NYSE:GCI) finally dropped its attempt to buy publisher Tronc Inc, which owns the Chicago Tribune and Los Angeles Times.
Gannett first made a bid for Tronc in April this year, when it was called Tribune Publishing.
It also owns the Baltimore Sun, Chicago Tribune, Orlando Sentinel and Hartford Courant titles.
Gannett simply said briefly it did not intend to pursue the transaction any longer.
Gannett, which owns local newspaper publisher Newsquest in the UK, offered $12.25 (£8.44) per share for Tribune Publishing in April, which was then boosted to $15 a share in May.
Tronc shares plunged 20% on Tuesday Morning, while Gannett shares were up 1.3% in early deals.
Tech entrepreneur Michael W. Ferro Jr in February took a US$44 million stake in Tribune Publishing and became its executive chairman and said he would not sell the group to Gannett.
In June, he changed the name to Tronc (Tribune Online Content), and moved it to Nasdaq from the New York Stock Exchange to reportedly make the company seem more like a technology start-up.
Gannett shares are up 0.77% to stand at 7.83p.
Story by ProactiveInvestors