New Media Investment Group, the parent company of GateHouse Media, said that it had arrived at an agreement to acquire Gannett for a combination of stock and cash.Both companies have vast portfolios. Gannett publishes USA Today, in addition to many well-known local newspapers. GateHouse Media operates in 612 markets in 39 states. Gannett shareholders will own 49.5% of the new company, and New Media shareholders will own 50.5%, the press release announcing the merger said.
Mergers and acquisitions of newspapers in recent years have typically resulted in layoffs in both the newsroom and on the business side. The combination of two big public companies can help the new company save on technology and human resources, and accelerate its"digital transformation," the press release said.