New Media to buy USA Today-owner Gannett in US$1.4 billion deal

REUTERS: Fortress Investment Group-backed New Media Investment Group said on Monday it will buy USA Today-owner Gannett Co in a US$1.4 billion deal, combining two of the biggest U.S. 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 12.2per cent 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.Shares of Gannett were trading up 3.3per cent at US$11.11, while those of New Media Investment Group were trading down 5.7per cent at US$10.06 in afternoon trading.

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