Corporate shakeups for Tribune Co. and Time Warner Cable
Gannet Co. announced their bid to purchase Tribune Publishing yesterday, while Charter Communications announced earlier that its taking over Time Warner Cable.
MORE IN THIS SECTION
The publisher of USA Today, Gannett Co., yesterday announced an $815 million bid for Tribune Publishing Co., which sets up a possible takeover to gain larger regional newspapers such as the Los Angeles Times and Chicago Tribune, according to Bloomberg.
Some of the newspapers that Gannet currently owns include the Arizona Republic and the Detroit Free Press. Gannet offered $12.25 in cash per Tribune share, a 63 percent premium to the Tribune’s closing price on April 22.
Gannett went public with its offer on Monday after several days of negotiations, according to Bloomberg. Gannet approached Tribune earlier this month and the company was set to respond in early June.
Tribune shares rose 57 percent to reach $11.74 per share, Bloomberg reported. The offer price takes into consideration any of the Tribune’s outstanding debt.
Gannett’s attempt at purchasing the publications comes at a time that the Tribune’s leadership and strategic outlook are evolving. Shareholder Michael Ferro acquired a 16.6 percent stake in the company, becoming the non-executive chairman. A month later, Tribune got rid of their CEO Jack Griffin.
Charter Communications to take over Time Warner pending FCC approval
The Department of Justice and the chairman of the Federal Communications Commission (FCC) approved on Tuesday Charter Communications' $78 billion takeover of Time Warner Cable and its $10.4 billion purchase of Bright House Networks, according to CNN.
The FCC and other government agencies attached, still needs to hold a full vote to accept FCC Chairman Tom Wheeler's recommendation. Several conditions are pending approval.
Some of these conditions include Charter being prohibited from putting data caps in place or charging customers based on usage, CNN reported. Additionally, the company won't be allowed to charge internet content providers any fees for connecting them to customers.
Once the deal has been completed, Charter will stand next to Comcast, AT&T, and Verizon as a big player in changing the way media is consumed.
Comcast attempted to purchase Time Warner almost a year ago, but the bid fell apart after it failed to gain approval from FCC and Department of Justice.
“At first blush, it appears that the Commission may have operated well outside the four corners of the merger application to pursue unrelated matters and policies,” said FCC Commissioner Michael O'Rielly in a statement. “I will carefully consider the item put before me and vote in a timely manner.”
Wheeler said in a statement that he believes the imposed conditions that will ensure a competitive video marketplace and increased broadband deployment.
“If the conditions are approved by my colleagues, an additional two million customer locations will have access to a high-speed connection,” Wheeler said. “At least one million of those connections will be in competition with another high-speed broadband provider in the market served, bringing innovation and new choices for consumers, and demonstrate the viability of one broadband provider overbuilding another.”