JPMorgan Chase & Co. has increased its bet on slumping newspapers by acquiring a 10.2 percent stake in Gannett, the publisher of USA Today and other dailies.
The bank-holding company is now Gannett's largest stockholder with 24.3 million shares as of April 30. That's according to a regulatory filing Tuesday. Based on its last round of disclosures, JPMorgan and its various subsidiaries began the year with about 7.4 million Gannett shares.
JPMorgan, which has acquired ownership stakes in other newspapers as part of bankruptcy proceedings, gave no indication that it intends to demand a shakeup at Gannett. Like its peers, Gannett has been struggling because of a steep drop in newspaper advertising.
Gannett shares surged more than 7 percent in afternoon trading as investors tried to ride JPMorgan's coattails.
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