Shareholders set to vote on GateHouse-Gannett deal
The newspaper industry mega deal in which GateHouse Media’s parent company plans to buy USA Today parent Gannett Co., combining the two largest newspaper chains in the country, faces its final hurdle Thursday when shareholders vote on the $1.2 billion pact.
New Media Investment Group’s acquisition with Gannett would create a nation-blanketing print and digital giant, with more than 260 daily newspapers and hundreds more websites and community and weekly newspapers across 47 states. The new company, to be called Gannett even though New Media is the acquirer, would have a daily print circulation of 8.7 million, dwarfing the next largest chain, McClatchy, with daily circulation of 1.7 million.
The companies say the advantages of size and reach will attract more digital advertisers and save expenses by eliminating operations deemed redundant or expendable, helping to offset a two-decade slide in revenue from print advertising and subscriptions, which has imperiled the newspaper industry overall.
The deal has been approved by the boards of both companies and by regulators. If shareholders vote in favor, it is expected to close before the end of the month. New Media shareholders would own 50.5% of the merged company, Gannett shareholders 49.5%.
Read more: https://www.tuscaloosanews.com/news/20191112/shareholders-set-to-vote-on-gatehouse-gannett-deal
Of the two publishers, Gannett leans left of center while GateHouse leans right of center. The merger means that the combined company will likely lean more towards the right. I also prefer the online layout of Gannett over GateHouse. Gannett has some articles that are for subscribers only while GateHouse limits readers to five free articles a month.