Digital First Media made an official proposal for the acquisition of Gannett Co., owner of USA TODAY and more than 100 local papers. Digital First Media, which is owned by Alden Global Capital, proposed to buy Gannett for $12 a share. Gannett sent out a statement saying its board of directors will speak with advisors to see what the best thing to do for the company and its shareholders is.
In a letter to Gannett’s board, Digital First said, “Frankly, the team leading Gannett has not demonstrated that it’s capable of effectively running this enterprise as a public company.” Digital First wants Gannett to discuss strategies about selling the company with an investment bank, halt digital acquisitions for now and get on a “feasible, strategic and financial path forward before hiring a new CEO.” Current CEO, Robert Dickey, will retire this May. For now, Gannett is functioning normally and promises to inform its employees as new information becomes available.