GateHouse buys USA Today owner Gannett, creating America’s biggest newspaper publisher
- The combined company would have more than 260 daily papers in the US along with more than 300 weeklies
USA Today publisher Gannett has agreed to a merger with rival GateHouse in a deal creating the largest US newspaper group, aiming for bigger scale to face the challenges of the troubled sector.
GateHouse parent New Media Investment Group will buy Gannett in a cash-and-stock transaction valued at around US$1.4 billion that creates a media company with 263 dailies and reaching 145 million customers.
Michael Reed, New Media chairman and chief executive, said he expects the deal “will transform the landscape in the print and digital news business” and help the firms accelerate the transformation to digital.
The combined company will operate under the Gannett brand, with former Bloomberg and Dow Jones executive Paul Bascobert named chief executive in the deal, expected to close before the end of the year.
Jeffry Louis, chairman of the Gannett board, said the tie-up could help the publishers “leverage the combined company’s enhanced scale and financial strength to continue to drive growth in the digital future.”
Under the deal, New Media will offer stock and cash worth US$12.06 per Gannett share and New Media shareholders will hold approximately 50.5 per cent of the combined company.