Gannett has scrapped its effort to acquire Tronc, which said the talks fell through because Gannett was unable to secure financing, USA Today reports.
Gannett owns USA Today and more than 100 local news properties. Tronc is the owner of the Los Angeles Times, the Chicago Tribune and other dailies.
Had it gone through, the acquisition would have created the largest newspaper publisher in the U.S.
In a memo to employees, Gannett CEO Robert Dickey said: “While we have great respect for the Tronc employees and properties, and while we believed that the acquisition would have provided an attractive opportunity to expand the USA Today network quickly, in the end the terms were not acceptable. That said, we remain fully committed to our strategy of expanding our local footprint and building the country’s largest digital news network under the USA Today network banner. But as I’ve said before, we will not make acquisitions unless they are accretive to shareholders and the terms make sense for the company.”