Dallas News to be Acquired by Hearst for $15 per Share
ByAinvest
Monday, Aug 4, 2025 9:07 am ET2min read
DALN--
DallasNews Corporation (DALN), the Dallas-based holding company of The Dallas Morning News and Medium Giant, reported its financial results for the second quarter of 2025. The company reported a net loss of $33.5 million, or $(6.26) per share, primarily due to a non-cash pension settlement charge of $35.3 million resulting from the annuitization of its pension plans [1].
The company's operating income for the second quarter of 2025 was $1.3 million, an improvement of $0.4 million or 36.7 percent compared to the second quarter of 2024. This improvement was driven by expense savings of $1.0 million in employee compensation and benefits, $0.8 million in outside services, and $0.6 million attributable to the transition to a smaller, leased printing facility, partially offset by a total revenue decline of $2.3 million [1].
Revenue for the second quarter of 2025 was $29.8 million, a decrease of $2.3 million or 7.2 percent compared to the second quarter of 2024. The decline was primarily due to a print advertising revenue decrease of $0.3 million or 4.6 percent and a print circulation revenue decrease of $0.7 million or 5.9 percent. Printing, distribution, and other revenue also decreased by $0.9 million or 28.9 percent due to the cancellation of a mailed advertisements partnership in April 2025 [1].
Total consolidated operating expense in the second quarter of 2025 was $28.5 million, an improvement of $3.0 million or 9.5 percent compared to the second quarter of 2024. The improvement was primarily due to expense savings of $1.1 million in employee compensation and benefits, $0.8 million in outside services, $0.6 million attributable to the transition to a smaller, leased printing facility, and $0.4 million in newsprint [1].
The company confirmed its proposed merger with Hearst Media West, LLC. The offer from Hearst increased to $15.00 per share, a premium of approximately 242 percent based on the closing price of DALN's common stock of $4.39 per share on July 9, 2025. The merger agreement is subject to customary closing conditions, including a shareholder vote in favor of the merger agreement [1].
The merger, if consummated, would delist DALN's Series A Common Stock from The Nasdaq Stock Market LLC and deregister it under the Securities Exchange Act of 1934. DallasNews shareholders would receive $15.00 in cash for each share of common stock. The transaction is expected to close during the third or early fourth quarter of 2025 [1].
In a separate development, MNG Enterprises previously proposed to acquire DallasNews for $88 million but canceled the acquisition [1].
References:
[1] https://www.globenewswire.com/news-release/2025/07/30/3124525/0/en/DallasNews-Corporation-Announces-Second-Quarter-2025-Financial-Results.html
DallasNews Corporation reported a Q2 net loss due to a pension settlement charge. The company confirmed a proposed merger with Hearst, with the latter increasing its offer to $15.00 per share. MNG Enterprises previously proposed to acquire DallasNews for $88 million but canceled the acquisition.
Title: DallasNews Corporation Reports Q2 Net Loss Amid Pension Settlement Charge; Confirms Proposed Merger with HearstDallasNews Corporation (DALN), the Dallas-based holding company of The Dallas Morning News and Medium Giant, reported its financial results for the second quarter of 2025. The company reported a net loss of $33.5 million, or $(6.26) per share, primarily due to a non-cash pension settlement charge of $35.3 million resulting from the annuitization of its pension plans [1].
The company's operating income for the second quarter of 2025 was $1.3 million, an improvement of $0.4 million or 36.7 percent compared to the second quarter of 2024. This improvement was driven by expense savings of $1.0 million in employee compensation and benefits, $0.8 million in outside services, and $0.6 million attributable to the transition to a smaller, leased printing facility, partially offset by a total revenue decline of $2.3 million [1].
Revenue for the second quarter of 2025 was $29.8 million, a decrease of $2.3 million or 7.2 percent compared to the second quarter of 2024. The decline was primarily due to a print advertising revenue decrease of $0.3 million or 4.6 percent and a print circulation revenue decrease of $0.7 million or 5.9 percent. Printing, distribution, and other revenue also decreased by $0.9 million or 28.9 percent due to the cancellation of a mailed advertisements partnership in April 2025 [1].
Total consolidated operating expense in the second quarter of 2025 was $28.5 million, an improvement of $3.0 million or 9.5 percent compared to the second quarter of 2024. The improvement was primarily due to expense savings of $1.1 million in employee compensation and benefits, $0.8 million in outside services, $0.6 million attributable to the transition to a smaller, leased printing facility, and $0.4 million in newsprint [1].
The company confirmed its proposed merger with Hearst Media West, LLC. The offer from Hearst increased to $15.00 per share, a premium of approximately 242 percent based on the closing price of DALN's common stock of $4.39 per share on July 9, 2025. The merger agreement is subject to customary closing conditions, including a shareholder vote in favor of the merger agreement [1].
The merger, if consummated, would delist DALN's Series A Common Stock from The Nasdaq Stock Market LLC and deregister it under the Securities Exchange Act of 1934. DallasNews shareholders would receive $15.00 in cash for each share of common stock. The transaction is expected to close during the third or early fourth quarter of 2025 [1].
In a separate development, MNG Enterprises previously proposed to acquire DallasNews for $88 million but canceled the acquisition [1].
References:
[1] https://www.globenewswire.com/news-release/2025/07/30/3124525/0/en/DallasNews-Corporation-Announces-Second-Quarter-2025-Financial-Results.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet