Acquired by media giant Hearst, DallasNews (DALN.US) shares soared more than 200%

The Zhitong Finance App learned that DallasNews (DALN.US) shares soared more than 200% to $13.56 per share on Thursday because the New York-based media giant Hearst (Hearst) will acquire the company, which also marks the end of the nearly 140 years of local ownership of the “Dallas Morning News”.

The two sides said in a statement that Hearst will buy DallasNews at a cash price of 14 US dollars per share. Compared with the stock's closing price of 4.39 US dollars per share on July 9, the premium is as high as 219%. The deal has been unanimously approved by both companies' boards of directors and is expected to close in the third or early fourth quarter. Once the deal is completed, DallasNews will become a private company.

Hearst currently publishes 28 daily newspapers and 50 weekly newspapers in the US, including Texas's most influential “Houston Chronicle” and “San Antonio Express.” Jeff Johnson, president of Hearst Newspapers, said, “This move is fully in line with our strategy to support trustworthy and influential local media brands and invest in growing markets.” “Hearst's resources, expertise, and successful experience in supporting and investing in local independent journalism will ensure that the Dallas Morning News continues to prosper for decades to come,” said Grant Moise, CEO of DallasNews.