Tronc Jumps After Donerail Group Is Identified as Potential Buyer

The sale of media publishing company Tronc Inc. (TRNC) is closer to becoming a reality, according to media reports. 

Tronc shares closed trading up 1.92% Thursday afternoon following a report from Reuters that Tronc is drawing interest from investment firm Donerail Group for a possible sale. 

Tronc shares started the day on good footing following a report late Wednesday that the company was entertaining a bid from an unnamed private equity firm. 

Donerail has already secured financing for the deal and is in advanced negotiations with Tronc, according to Reuters sources. 

The Chicago Tribune, which is owned by Tronc, first reported buyer interest on Wednesday, without naming where the interest was coming from. 

Tronc was spun off from its former parent company, Tribune Media Co. in 2014. 

Tribune Media (TRCO) was also in the news Thursday after announcing that it is not only terminating its proposed acquisition of Sinclair Media (SBGI) , but it is also suing the television station owner for $1 billion. 

In July, Federal Communications Commision Chairman Ajit Pai said that he had concerns about Sinclair's submissions as part of the agency's review of the merger.

The merger was first announced in May 2017.

"Our merger cannot be completed within an acceptable time frame, if ever," Tribune Media Chief Executive Peter Kern said in a statement. "This uncertainty and delay would be detrimental to our company and our shareholders. Accordingly, we have exercised our right to terminate the merger agreement, and, by way of our lawsuit, intend to hold Sinclair accountable."

Tronc shares were up more than 3% after-hours Thursday. 

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