Tags: gannett | usa today | new media | buy

New Media to Buy USA Today-Owner Gannett in $1.4B Deal

New Media to Buy USA Today-Owner Gannett in $1.4B Deal
Jonathan Weiss | Dreamstime.com

Monday, 05 August 2019 03:35 PM

Fortress Investment Group-backed New Media Investment Group said on Monday it will buy USA Today-owner Gannett Co. in a $1.4 billion deal, combining two of the biggest U.S. daily newspapers.

Gannett shareholders will receive $6.25 in cash and 0.5427 of a New Media share for each share they hold, amounting to $12.06, which represents 12.2% premium to Gannett's Friday close.

Gannett, which has been struggling with slowing sales, fended off newspaper chain MNG Enterprises's efforts to put its nominees on its board in February, after it rejected MNG's $1.36 billion hostile takeover bid.

After the merger closes, expected by the second half of 2019, both New Media and its operating subsidiary GateHouse will be rebranded and operate under the "Gannett" brand.

The combined company will be led by New Media's Chief Executive Officer Michael Reed.

Shares of Gannett (GCI) were trading up 3.3% at $11.11, while those of New Media Investment Group (NEWM) were trading down 5.7% at $10.06 in afternoon trading. 

© 2019 Thomson/Reuters. All rights reserved.

   
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Fortress Investment Group-backed New Media Investment Group said on Monday it will buy USA Today-owner Gannett Co. in a $1.4 billion deal, combining two of the biggest U.S. daily newspapers.
gannett, usa today, new media, buy
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2019-35-05
Monday, 05 August 2019 03:35 PM
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