Tronc Inc. said on Wednesday that it has sold the Los Angeles Times and the San Diego Union-Tribune for $500 million to businessman Dr. Patrick Soon-Shiong. Shares of Tronc rose 66% in premarket trade after the news. The sale includes various other titles in the California News Group. Dr. Soon-Shiong is acquiring the newspapers through his private investment vehicle Nant Capital, and in addition to the $500 million price tag there is the assumption of $90 million in pension liabilities. Tronc Chief Executive Officer Justin Dearborn said the sale will allow the company to repay all of its outstanding debt. “We will have a versatile balance sheet that will enable us to be even more aggressive in executing on our growth strategy as a leading player in news and digital media,” Dearborn said in a statement. The news of the sale comes just weeks after the LA Times newsroom won a hard fought battle against Tronc management to unionize. In addition to selling the LA Times and other news titles, Tronc acquired a majority stake in BestReviews for an undisclosed amount, and the company announced a new national digital strategy. The company said in a separate news release that with its enhanced balance sheet Tronc will launch a digital growth strategy through a newly reorganized Tribune Interactive division. Shares of Tronc are up more than 34% in the last 12 months, while the S&P 500 index is up nearly 18% and the Dow Jones Industrial Average is up 24%.
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