Shareholders approve $1.13 billion Gatehouse Media-Gannett merger
New York-based New Media Investment Group, the parent company of Gatehouse Media, expects to complete its $1.13 billion acquisition of McLean-based Gannett Co. Inc. next week, following Thursday’s approval of the deal by shareholders.
The Nov. 19 merger of Gannett and Gatehouse will create the nation’s largest publisher, with more than 260 dailies, including USA Today, and hundreds of weeklies. The daily papers have a total circulation of 8.7 million.
The combined company will be called Gannett. The merger is expected to result in $275 million to $300 million in reduced annual costs.
Under the terms of the merger agreement, Gannett shareholders will receive $6.25 in cash and 0.5427 shares of New Media stock for every share they own.
In Virginia, Gatehouse owns Virginia Lawyers Weekly in Richmond and The Progress Index, a daily newspaper in Petersburg.
In addition to USA Today, which is based in McLean, Gannett owns The News Leader, a daily paper in Staunton.