Thursday, December 17, 2020
Tribune Publishing Company (TPCO)
Building A Large Cash Hoard
Tribune Publishing Co is a print and online media company that publishes various newspapers and websites. It creates and distribute content across its media portfolio, offering integrated marketing, media, and business services to consumers and advertisers, including digital solutions and advertising opportunities. The company manages its business as two distinct segments, M and X. Segment M is comprised of the company’s media groups excluding their digital revenues and related digital expenses, except digital subscription revenues when bundled with a print subscription. Segment X includes the company’s digital revenues and related digital expenses from local Tribune websites, third party websites, mobile applications, digital only subscriptions, Tribune Content Agency and BestReviews.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Announces sale of its interest in BestReviews. The company plans to sell BestReviews to Nexstar Broadcasting for a total of $160 million. Tribune’s 60% interest would be worth roughly $100 million, less taxes and fees. The transaction is expected to close by year end.
Sale viewed favorably. Tribune purchased its 60% interest in BestReviews three years earlier for $66 million, with a tax basis estimated to be roughly $60 million. As such, the sale of its interest for $100 million represents a substantial return on its investment, with net proceeds from the sale estimated to be roughly $89 million, or $2.40 per share …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
