NEW YORK, June 29, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of ReachLocal, Inc. ("RLOC" or the "Company") in connection with the proposed acquisition of the Company by Gannett Co., Inc. ("Gannett"). On June 27, 2016, the Company announced it had reached a definitive agreement for Gannett to acquire all outstanding shares of RLOC. Under the terms of the agreement, RLOC shareholders will receive $4.60 in cash for each RLOC share they own.
WeissLaw is investigating whether RLOC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the Company recently reported positive financial results. It announced on May 3, 2016, its "fourth consecutive quarter of positive Adjusted EBITDA," with $3.4 million in Adjusted EBITDA in the first quarter of 2016. Additionally, according to Gannett's president and chief executive officer, Robert Dickey, "[t]he acquisition of ReachLocal [will accelerate] Gannett's digital growth strategy, adding more than $320 million of annual digital revenue."