New Media Investment Group Inc., the parent of GateHouse Media, announced today that it is buying USA Today owner Gannett Co. New Media will acquire Gannett for a combination of cash and stock.
“With strategically-aligned leadership and significant scale of operations, the Merger will accelerate the combined company’s digital transformation,” GateHouse said in a press release.
The companies expect to “run-rate cost synergies” (save) between $275 million to $300 million in annual costs within 24 months by shedding what journalists remain with Gannett.
Gannett’s flagship properties include USA Today, Arizona Republic, Cincinnati Enquirer, Louisville Courier-Journal, Milwaukee Journal Sentinel, Nashville Tennessean and Detroit Free Press.
The Arizona Daily Star is owned jointly by Lee Enterprises and Gannett.