The parent company of the Springfield News-Leader has been acquired by New Media Investment Group, the company behind GateHouse Media, with the merger of the companies creating one of the biggest newspaper conglomerates in the United States.
The cash-and-stock deal is worth about $1.38 billion and is expected to be completed by the end of the year.
“We believe this transaction will create value for our shareholders, greater opportunities for our employees,
and a stronger future for journalism,” Michael Reed, New Media Chairman and Chief Executive Officer, said in a press statement. “Gannett is an innovative, digitally-focused media and marketing solutions company with well-known brands worldwide. Uniting our talented employees and complementary portfolios will enable us to expand our comprehensive, hyperlocal coverage for consumers, deepen our product offering for local businesses, and accelerate our shift from print-centric to dynamic multimedia operations. We are honored to become a part of Gannett’s storied history and a steward of their strong media properties into the future. We are committed to delivering significant synergies in a thoughtful manner, consistent with our shared goals for the business.”
GateHouse, based in Pittsford, New York, will combine operations with the McLean, Virginia based Gannett. The two companies will operate over 260 daily newspapers including the Springfield News-Leader. The combined company will be based at Gannett’s headquarters near Washington, D.C..
Shareholders of GateHouse will own 50.5% of the combined company and Gannett stockholders 49.5%.
Reed will remain as CEO of the umbrella company that will retain the name Gannett.