Sun Newspapers to buy Alaska’s newspaper, Sun News, for $2.7B
Sun Newspants has announced plans to buy the Alaska-based newspaper, with the two companies looking to merge into a company that could be worth as much as $2 billion.
The deal was announced Monday, with Sun News’ parent company, SunTrust, investing $1.9 billion in the company.
Sun’s shareholders will own the company at a value of $1 billion, said Andrew Ragan, Sun’s president and chief executive officer.
Sun will buy the Sun News and Sun Publishing properties, including its flagship, as part of a plan to acquire both companies in a deal that will give it control of the largest daily newspaper in the U.S.
Sun News has more than 7,600 employees in Alaska, with a market share of less than 10%.
SunNews was founded in 1869 in Anchorage and is the largest paper in Alaska.
Sun’s merger with SunTrust would create Sun News Corp., a company with a $2-billion market value, with its core business covering Alaska, Hawaii, and Guam.
The acquisition would be Sun’s largest deal since buying Tribune Publishing in 2015 for $1,250 million.
It is expected to close in the second quarter of 2021.