USA Today owner Gannett bids for Tribune Publishing

Newspaper publisher Gannett wants to buy Tribune Publishing for more than $388 million, a deal that would give the owner of USA Today control of the Los Angeles Times, Chicago Tribune and several other newspapers.

But Gannett said Monday that Tribune has refused to start “constructive discussions” since it first offered to buy its rival this month. Tribune confirmed Monday that it received the unsolicited offer and said it “will respond to Gannett as quickly as feasible.”

Gannett wants Tribune so that it can expand its USA Today Network, an effort it launched late last year to unite USA Today with its more than 100 local daily newspapers. The network helps the company share stories more easily between USA Today and its smaller papers, such as The Coloradoan in Fort Collins and The Des Moines (Iowa) Register.

Buying Tribune would give Gannett 11 more major daily newspapers, including the Orlando (Fla.) Sentinel, The Baltimore Sun and The Hartford (Conn.) Courant.

As more people get their news online, print media companies have been buying newspapers and websites to fight falling advertising revenue and reduce costs. This month, Gannett completed a $280 million buyout of Journal Media Group, adding 15 newspapers to its portfolio.

Gannett and Tribune were spun off from larger media firms that owned TV stations, a move to protect the accelerating growth of broadcast advertising from the falling fortunes of newspapers.

Gannett said it offered $12.25 in cash for each Tribune share. That’s a 63 percent premium to Tribune’s Friday closing price of $7.52. Gannett valued the total deal at about $815 million, which includes about $390 million of debt.

Shares of Tribune Publishing Co. jumped $3.98, or 53 percent, to close Monday at $11.50. Gannett Co. shares rose $1.02, 6.5 percent, to close at $16.79.