The valuation of Tribune Publishing and its nine metro newspapers, in play for takeover, continues to be an issue with fresh evidence this week that the company is doing reasonably well financially.
Tribune Publishing reported its first-quarter results Thursday with EBITDA (earnings before interest, taxes, depreciation and amortization) of $25 million. The company also has $250 million in cash on hand, according to the report.
Annualized, those earnings would be $100 million. Four times earnings is a low-end multiple for valuing newspapers or newspaper companies. That would suggest a price of $400 million, or a total valuation of $650 million with the cash added.
Which roughly equals hedge fund Alden Global Capital’s $630 million offer for the company.
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