Tronc is considering an offer to sell the
Chicago Tribune and its other newspaper holdings to a private equity firm,
sources close to the company said Aug. 8, the paper reported.
On Aug. 9, Reuters reported that Donerail Group, a newly formed investment firm headed by former Starboard Value LP executive Will Wyatt, is in negotiations to buy Tronc.
The deal is not a sure thing and sources said the financing might not be there, the paper reported.
Tronc spokeswoman Marisa Kollias declined to comment, the paper said.
Wyatt formerly worked for New York-based Starboard Value LP, which bought part of Tronc as it was battling a hostile takeover effort by Gannett in 2016, according to reports.
Wyatt also worked as a consultant in Tronc’s sale of the Los Angeles Times and San Diego Union-Tribune to billionaire Patrick Soon-Shiong, the Chicago Tribune reported. The deal left Tronc nearly debt-free and with nearly $215 million in available cash on hand as of July 1, according to its second-quarter earnings report.
In 2017, Starboard Value also bought a piece of Tribune Media as it was working on a merger with Sinclair Broadcast Group. That deal died Aug. 9 as Tribune Media filed a $1 billion breach of contract suit against Sinclair.
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