On Thursday, July 18, The Wall Street Journal reported that USA Today publisher Gannett is nearing a deal to combine with rival GateHouse Media, a move that would join the nation’s two largest newspaper groups by circulation.
The report claimed that the deal would be a cash and stock deal where GateHouse or its parent company would buy Gannett and GateHouse’s Chairman and CEO Mike Reed would remain at the helm of the expanded newspaper publisher.
There was no amount revealed on the value of the transaction, but Gannett shares rose nearly 8% after hours after The Wall Street Journal reported that a deal with GateHouse may be close.
GateHouse is currently the largest newspaper publisher in the US by titles owned, with 156 dailies and 464 weeklies, most of which are in very small markets. It is No. 2 by circulation, behind Gannett, which owns 109 dailies including the Arizona Republic, Milwaukee Journal Sentinel and the Indianapolis Star—in addition to its flagship USA Today.
Full Content: The Wall Street Journal