- The stock price of Gannett Co Inc (NYSE: GCI) increased 15.86% as it went from a previous close of $2.90 to $3.36 per share on December 31. This is why it happened.
The stock price of Gannett Co Inc (NYSE: GCI) increased 15.86% as it went from a previous close of $2.90 to $3.36 per share on December 31. One of the biggest triggers for the stock price increase of Gannett likely had something to do with its rival Tribune Publishing receiving a buyout offer. Tribune’s stock price had increased 7.11% on December 31 due to the buyout announcement.
Alden Global Capital currently owns 32% of Tribune Publishing and in a recent filing, the hedge fund company proposed an offer to buy out the remainder of the company. The offer was made through a letter of inquiry on December 14 at a price of $14.25 — which values Tribune at $520 million. Tribune has not made it clear if it would accept the offer yet.
So essentially a ripple effect about a buyout offer for its rival benefitted the stock price of Gannett. Gannett is known for owning a number of popular newspaper brands like USA Today, the Detroit Free Press, The Tennessean, The Cincinnati Enquirer, and The Arizona Republic.
I do not have a position in any of the companies mentioned in this article