Media
Tronc Buys NY Daily News in Bet on New York Market
Published:
Last Updated:
Newspaper publisher Tronc Inc. (NASDAQ: TRNC) bought the New York Daily News for $1 plus the assumption of its pension and other liabilities. It is bet on the New York City market. The New York Daily News has lost money for a number of years, but Tronc now has papers in Los Angeles, Chicago and New York City, the nation’s three largest markets.
Tronc may be able to save money by combining some functions with the Harford Courant, which it also owns. If those savings are in the millions of dollars, Tronc should be able to cut Daily News losses sharply.
Tronc will also enhance its national digital footprint. Its LATimes.com is one of the largest newspaper websites in the country. According to Simple Web, its audience is 65 million visits a month. The same research firm puts the number for NYDailyNews.com at 40 million. In combination with other Tronc papers, its total audience among all its news sites brings it closer to WashingtonPost.com, one of the largest newspaper sites in the country.
Tronc will be able to sell both national and online advertising across a network that includes the three large cities. It also will be able to syndicate content that includes both video and articles across its papers. Tronc has set a major initiative to increase its video content. Some of this almost certainly will end up in NYDailynews.com.
The deal also undermines chance that Gannett Co. Inc. (NYSE: GCI) will take another run at Tronc. Gannett tried to buy Tronc last year. Tronc has made a large investment in the New York Daily News and added online industry veteran Ross Levinsohn as CEO of the Los Angeles Times. It is unlikely Tronc Chairman Michael Ferro, who on a practical basis controls Tronc, will abandon what are clearly plans to build a national newspaper empire.
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.