Longer-term needs for Tronc remain digital growth and strategic M&A

By Trey Williams

The best-case scenario for Tronc Inc. in its potential acquisition of Chicago Sun-Times owner Wrapports Holdings LLC is that it gets a good price and the deal improves cash flow.

Tronc TRNC, +1.83% , which publishes the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and the Orlando Sentinel, announced on Monday that it had entered into a nonbinding agreement to acquire Wrapports. Wrapports said that it would entertain other offers but that if no other viable buyers expressed substantial interest within 15 days it would finalize its sale to Tronc.

“It’s a head scratcher,” said Singular Research analyst Robert Maltbie. “We’re in the dark because we don’t know the valuation of this company. I like it if it’s accretive to [Tronc’s earnings before interest, tax, depreciation and amortization], if they’re getting it for a great price, and it helps maintain cash flow so the company doesn’t go under.”

But even then, this would likely be nothing more than a Band-Aid for Tronc, according to Doug Llewellyn, chief operating officer of the digital publishing platform Purch.

Read the full article here: http://www.marketwatch.com/story/if-chicago-tribune-and-la-times-publisher-tronc-buys-sun-times-parent-its-only-step-1-2017-05-18

facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

By Ross Benes

Here’s one more thing for small publishers to worry about: New net-neutrality rules are going to jack up the costs of doing business.

Rolling back net neutrality would relegate independent publishers to the slow lane of the internet because they’d be unable to afford access to high speeds. Large publishers with more cash can overcome this obstacle, but they’ll be hit with onerous fees and face possible competitive disadvantages from subsidiaries of internet-service providers receiving preferential treatment.

“I suspect that ISPs would create different tiers of data transmission speeds and prioritization,” said Fred Lane, an attorney who specializes in emerging technologies. ”Large corporations would be in a position to negotiate preferential treatment in ways not available to smaller content producers.”

See the full article featuring comments from CTO John Potter here: http://digiday.com/media/net-neutrality-hurt-publishers/

facebooktwittergoogle_plusredditpinterestlinkedintumblrmail

Contact Us

Follow our easy step-by-step guide and we will contact you personally.

  • Advertising
  • Business development
  • Licensing/reprints
  • Careers
  • Press inquiries
  • General