The Gannett deal

GateHouse Media Parent to Buy Gannett for $1.4 Billion


Excerpt:

The country’s two largest newspaper chains agreed to combine their businesses in a roughly $1.4 billion deal, further consolidating an industry reeling from strong economic headwinds.

New Media Investment Group Inc., NEWM -5.61% the parent of GateHouse Media, is buying Gannett Co. in a cash and stock transaction, the companies said Monday. New Media will pay $6.25 in cash and 0.5427 New Media share for a total of $12.06 for each Gannett share.

The deal combines the largest owner of U.S. newspapers by titles—GateHouse, with 400 papers and a total circulation of 4.29 million—and the largest newspaper group by circulation—Gannett, with a circulation of 4.32 million and 215 titles including USA Today, according to a University of North Carolina study.

Comment: GCI has been a sorry investment