Two newspaper stocks are trending after Gannett Co Inc (NYSE:GCI) offered to purchase Tribune Publishing Co (NYSE:TPUB) for $12.25 per share in cash in an unsolicited bid. Gannett Co Inc (NYSE:GCI) shares are up by 1.65% while Tribune Publishing Co (NYSE:TPUB) shares have surged by 58.8% on the news. The offer values Tribune at 5.6-times 2016 EBITDA based on consensus estimates and the potential deal between the two companies could deliver synergies of around $50 million per year. Gannett is best known for its USA Today newspaper while Tribune Publishing owns the Los Angeles Times, among others. Tribune Publishing previously refused to hold constructive merger talks with Gannett, which to lead to Gannett going hostile today. 16 elite funds that Insider Monkey tracks owned $203.12 million of Gannett Co Inc (NYSE:GCI)’s shares on December 31, while nine funds were long Tribune at the end of 2015.
On the next page we examine the latest news pulling Perrigo Company, Advanced Micro Devices, and Valeant Pharmaceuticals in different directions this morning.