PHOENIX — New York-based New Media Investment Group Inc. (NYSE: NEWM), which runs the GateHouse chain of local community newspapers, announced it intends to acquire McLean, Virginia-based newspaper publisher Gannett Co. Inc. (NYSE: GCI) for about $1.34 billion in cash and stock.
That works out to $6.25 in cash and 0.54 of a New Media share for each share of Gannett stock, according to an announcement, representing about $12.06 per share. That is about an 18% premium on the average price of Gannett shares in the five days preceding Aug. 2, according to the announcement.
The deal combines two of the largest newspaper companies. Gannett publishes the Arizona Republic, the state's largest newspaper, as well as USA Today and dozens of news publications across the country and more than 160 newspapers in the United Kingdom through its Newsquest Media Group subsidiary.
New Media also owns small business digital services provider UpCurve.
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