New Media acquires Gannett at $1.4bn, to create biggest newspaper publisher

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New Media acquires Gannett at $1.4bn, to create biggest newspaper publisher

Later, on Monday, the 5th of August 2019, Fairport, NY-based New Media Investment Group, one of the largest US publishers of locally printed press and digital media, issues a statement saying that local media company had agreed to purchase McLean, Virginia-based Gannet at $1.4 billion cash-and-stock takeover deal, suggesting an auspicious move at a suspicious time what would be creating United States’ largest Newspaper publisher, as US newspaper publishers had been languishing over the recent years with readers shifting their focus on to online sources for information.

In point of fact, latest takeover deal for Gannet, largest US newspaper publisher in terms of a total daily circulation across United States, came a few hours after the Virginia-based newspaper publisher had missed its estimate on earnings’ for Q2, 2019.

Followed by the reveal of a Gannet takeover deal at $1.4 billion on Monday (August 5th), Chief Executive of New Media, Michael Reed had been quoted saying in a conference call with the reporters that the combined entity was expected to generate roughly 25 per cent of its entire revenue by digital media.

According to New Media Investment Group’s Monday’s (August 5th) statement, the US-based newspaper publisher was expected to complete the merger deal as early as second half of 2020, while under terms of the merger deal, New Media would hold a majority stake of 50.5 percent of the newly formed entity and New Media Investment Group CEO, John Reed would be chairing the merger.