GateHouse Media has acquired USA Today publisher Gannett for $1.4 billion, the company announced on Monday afternoon.
Under the terms of the Merger Agreement, shareholders of Gannett will receive $6.25 in cash and 0.5427 of a New Media share for each Gannett share they hold, representing total consideration of $12.06 per Gannett common share based on New Media’s closing stock price as of August 2, 2019, and a premium of approximately 18% to the five-day volume-weighted average price of Gannett shares as of that date. After the close of the transaction, Gannett shareholders will hold approximately 49.5% of the combined company and New Media shareholders will hold approximately 50.5%.
“GateHouse Media owner and USA TODAY owner Gannett combine to become biggest US news publisher,” USA Today’s Twitter account tweeted, linking to an article that had more details of the acquisition.
“This combination will create a broad network of talented, experienced journalists poised to deliver unique and award-winning content for local communities and national audiences. The breadth and depth of each company’s digital offerings will make the combined company a leading digital media player,” a release announcing the merger said.
This followed reports from July 19 that said that the two companies were close to merging.
In May, Gannett CEO Robert Dickey retired. The company has had no permanent chief executive since.