New York Daily News owner Tronc soars on a report that it may sell all its newspapers

The stock of Tronc, the publishing chain that owns the Chicago Tribune and the New York Daily News, rallied on a report that the company is considering a sale of its newspaper holdings to a private equity firm. The proposed deal involves a bid of $19 to $20 a share, according to a story in the Tribune, which cited unidentified people close to the company. The offer could value the business at $700 million, the newspaper reported. Tronc, based in Chicago, declined to comment. The speculation follows Tronc's sale of the Los Angeles Times to billionaire Patrick Soon-Shiong in June. At the same time, the company has made cutbacks at its other newspaper properties, including the Daily News. That paper is eliminating about half its editorial staff. A private equity acquisition of the Tribune and other publications would extend a trend of financial firms taking a bigger stake in America's newspapers. Wednesday's report sent Tronc shares up as much as 17 percent to $17.30, the biggest intraday gain since Feb. 7. Before the rebound, the shares had been down 16 percent this year. —Bloomberg News with Ad Age

New York Daily News owner Tronc soars on a report that it may sell all its newspapers

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