MNG Enterprises/Digital First Media has released the presentation that they will deliver to Gannett shareholders next month as they seek to purchase the media giant in takeover bid worth $1.7 billion.
Gannett owns eight daily newspapers in New Jersey: The (Bergen) Record, the Asbury Park Press, the Courier News, the Courier-Post, the Home News Tribune, the Daily Record, the Daily Journal, and the Herald News.
Since Gannett rejected the $12-per-share offer, the company has reported wider than expected losses for the fourth quarter of 2018. MNG says that Gannett has lost two-thirds of its free cash flow over the last four years. They said Gannett’s share price has declined 41% since a 2015 spinoff.
Gannett has accused MNG/Digital First, which is backed by a New York hedge fund, of avoiding details about its ability to finance their takeover bid.
An independent analyst, J.P. Morgan, has called the MNG/Digital First offer “a potentially favorable exit for shareholders.”
Rep. Bill Pascrell (D-Paterson) announced his opposition to the sale in February, saying that approval of a deal to let a “predatory hedge fund take over one of America’s largest, most trusted news companies would take one more wrecking ball to our independent press.”MNG-GCI-Shareholder-Presentation