DallasNews Rejects Revised Non-Binding Proposal from Affiliate of Alden Global Capital
DallasNews Corporation (Nasdaq: DALN) has rejected a revised non-binding proposal from Alden Global Capital's affiliate MNG Enterprises to acquire all outstanding shares at $18.50 per share in cash. The Board reaffirmed its support for the existing merger agreement with Hearst, which offers $15.00 per share in cash.
The Hearst deal represents a 242% premium over the July 9 closing price. Notably, Robert W. Decherd, who controls over 96% of voting power in Series B stock and more than 50% of combined voting power, has confirmed his intention to vote in favor of the Hearst merger while explicitly rejecting any scenario involving a sale to Alden.
DallasNews Corporation (Nasdaq: DALN) ha respinto una proposta non vincolante rivista del affiliato di Alden Global Capital, MNG Enterprises, volta ad acquistare tutte le azioni in circolazione a $18,50 per azione in contanti. Il Consiglio ha ribadito il suo sostegno all'accordo di fusione esistente con Hearst, che offre $15,00 per azione in contanti.
L'accordo con Hearst rappresenta un premio del 242% rispetto al prezzo di chiusura del 9 luglio. In particolare, Robert W. Decherd, che detiene oltre il 96% del potere di voto nelle azioni di Serie B e più del 50% del potere di voto complessivo, ha confermato la sua intenzione di votare a favore della fusione con Hearst respingendo esplicitamente qualsiasi ipotesi di vendita ad Alden.
DallasNews Corporation (Nasdaq: DALN) rechazó una propuesta revisada no vinculante del afiliado de Alden Global Capital, MNG Enterprises, para adquirir todas las acciones en circulación a $18.50 por acción en efectivo. La Junta reafirmó su apoyo al acuerdo de fusión existente con Hearst, que ofrece $15.00 por acción en efectivo.
El acuerdo con Hearst representa una prima del 242% sobre el precio de cierre del 9 de julio. Cabe destacar que Robert W. Decherd, que controla más del 96% del poder de voto en las acciones Serie B y más del 50% del poder de voto combinado, ha confirmado su intención de votar a favor de la fusión con Hearst y ha rechazado explícitamente cualquier escenario de venta a Alden.
DallasNews Corporation (Nasdaq: DALN)는 Alden Global Capital의 계열사 MNG Enterprises가 제시한 주당 $18.50 현금 인수 수정 비구속 제안을 거부했습니다. 이사회는 주당 $15.00 현금을 제시한 기존 Hearst과의 합병 계약에 대한 지지를 재확인했습니다.
Hearst와의 거래는 7월 9일 종가 대비 242% 프리미엄에 해당합니다. 특히 Robert W. Decherd는 시리즈 B 주식의 96% 이상의 의결권과 결합 의결권의 50% 이상을 보유하고 있으며, Hearst 합병에 찬성표를 던질 의사를 확인하고 Alden에 대한 매각 가능성은 명시적으로 거부했습니다.
DallasNews Corporation (Nasdaq: DALN) a rejeté une proposition révisée non contraignante de la filiale de Alden Global Capital, MNG Enterprises, visant à acquérir toutes les actions en circulation à 18,50 $ par action en espèces. Le conseil d'administration a réaffirmé son soutien à l'accord de fusion existant avec Hearst, qui propose 15,00 $ par action en espèces.
L'accord avec Hearst représente une prime de 242% par rapport au cours de clôture du 9 juillet. Notamment, Robert W. Decherd, qui contrôle plus de 96% du pouvoir de vote des actions de série B et plus de 50% du pouvoir de vote combiné, a confirmé son intention de voter en faveur de la fusion avec Hearst, rejetant explicitement toute hypothèse de vente à Alden.
DallasNews Corporation (Nasdaq: DALN) hat ein überarbeitetes unverbindliches Angebot der Alden Global Capital-Tochter MNG Enterprises abgelehnt, alle ausstehenden Aktien zum Preis von $18,50 pro Aktie in bar zu erwerben. Der Vorstand bekräftigte seine Unterstützung für die bestehende Fusionsvereinbarung mit Hearst, die $15,00 pro Aktie in bar bietet.
Der Deal mit Hearst stellt eine Prämie von 242% gegenüber dem Schlusskurs vom 9. Juli dar. Bemerkenswert ist, dass Robert W. Decherd, der über mehr als 96% der Stimmrechte der Series-B-Aktien und mehr als 50% der kombinierten Stimmrechte verfügt, seine Absicht bestätigt hat, für die Fusion mit Hearst zu stimmen und einen Verkauf an Alden ausdrücklich ablehnt.
- Hearst merger offers a significant 242% premium over July 9 closing price
- Strong shareholder support with controlling stakeholder backing the Hearst deal
- Increased purchase price from initial $14.00 to $15.00 per share from Hearst
- Rejection of higher $18.50 per share offer from Alden
- Limited negotiating leverage due to controlling shareholder's firm stance
Insights
DallasNews rejects higher Alden bid due to controlling shareholder's firm opposition, making Hearst's lower offer the only viable path forward.
DallasNews Corporation has rejected a $18.50 per share cash offer from Alden Global Capital despite it being $3.50 higher than Hearst's $15.00 bid. This decision highlights a critical dynamic in corporate transactions with dual-class share structures. While Alden's bid represents more immediate value for common shareholders, the rejection stems from a structural reality rather than traditional financial considerations.
The key determinant here is Robert W. Decherd, who controls over 96% of the voting power of Series B shares and more than 50% of the combined voting power. His unequivocal statement that "there is no scenario" in which he'll approve an Alden transaction effectively blocks any path forward for the higher bid, regardless of price differential.
Hearst's offer, while lower at $15.00 per share, still represents a substantial 242% premium over the pre-announcement share price. The board's decision to reaffirm the Hearst merger reflects pragmatic recognition of the voting reality rather than a pure value assessment.
For minority shareholders, this situation demonstrates the limitations of influence in dual-class structures where voting control is concentrated. Despite the obvious appeal of Alden's higher offer, the controlling shareholder's preference for Hearst makes the $15.00 bid the only viable path to realizing immediate premium value.
Board Reaffirms Unanimous Support for the Hearst Merger and the Certain and Significant Cash Premium It Will Deliver for Shareholders
DALLAS, Aug. 27, 2025 (GLOBE NEWSWIRE) -- DallasNews Corporation (Nasdaq: DALN) (the “Company” or “DallasNews”), the holding company of The Dallas Morning News and Medium Giant, announced today that its Board of Directors (the “Board”), following consultation with the Company’s legal and financial advisors, reviewed and rejected the revised, non-binding proposal (the “Revised Alden Proposal”) received on August 19, 2025, from MNG Enterprises, Inc., an affiliate of Alden Global Capital (“Alden”), to acquire all of the issued and outstanding shares of the Company’s common stock at
As previously announced, on July 9, 2025, DallasNews entered into a definitive agreement (as amended from time to time, the “Hearst Merger Agreement”) with Hearst, one of the nation’s leading information, services and media companies, pursuant to which Hearst agreed to acquire all of the issued and outstanding shares of the Company’s common stock at a price of
Consistent with its fiduciary duties, the Board carefully reviewed the Revised Alden Proposal with the Company’s legal and financial advisors and determined the modified proposal is not a superior proposal and not reasonably likely to lead to a superior proposal. This review included engagement with Robert W. Decherd, who, collectively with his affiliates, controls more than
About DallasNews Corporation
DallasNews Corporation is the Dallas-based holding company of The Dallas Morning News and Medium Giant. The Dallas Morning News, a leading daily newspaper, is renowned for its excellent journalistic reputation, intense regional focus, and close community ties. As a testament to its commitment to quality journalism, the publication has been honored with nine Pulitzer Prizes. Medium Giant, an integrated creative marketing agency with offices in Dallas and Tulsa, works with a roster of premium brands and companies. In 2024, the agency earned top industry recognition, winning an AAF Addy and the AMA DFW Annual Marketer of the Year Award for Campaign of the Year, along with six prestigious Davey Awards. Medium Giant is a wholly owned business of DallasNews Corporation. For additional information, visit mediumgiant.co.
Shareholder Contacts
D.F. King & Co., Inc.
Toll-free: 1-866-416-0577
DALN@dfking.com
Okapi Partners LLC
Toll-free: 1-844-343-2621
Info@okapipartners.com
Media Contact
Gagnier Communications
Riyaz Lalani / Dan Gagnier
DallasNews@gagnierfc.com
FAQ
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