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US: New Media to buy USA Today-owner Gannett for $1.4B

 |  August 5, 2019

Fortress Investment Group-backed New Media Investment announced on Monday, August 5, it will buy USA Today-owner Gannett in a US$1.4 billion deal, combining two of the biggest US daily newspapers.

Gannett shareholders will receive US$6.25 in cash and 0.5427 of a New Media share for each share they hold, amounting to US$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 US$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 CEO Michael Reed.

Full Content: Reuters

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