In April, Ferro struck the deal to sell his 25.6 percent stake in Tronc — which owns the Chicago Tribune, the Los Angeles Times and other newspapers — for $208.6 million to McCormick Media. Ferro owned the shares personally and through his Merrick Media and Merrick Venture Management entities.
That purchase agreement priced Ferro’s more than 9 million shares of Tronc at $23 each. Ferro had the option to terminate the deal and receive a $1 million fee if it didn’t close by the later of May 15 or five days after federal antitrust regulators signed off on the transaction.
In a filing with the Securities and Exchange Commission on Tuesday, Ferro said he terminated the purchase agreement because of a “breach of its obligations” by the buyer, McCormick Media.
A source familiar with the proposed transaction said Tuesday that McCormick Media was unable to fully finance the transaction.
Source: McCormick Media’s deal to buy Michael Ferro’s Tronc stake falls through | Chicago Tribune