Gannett closes deal for The CA’s parent company
Publisher of USA TODAY also owns other Tennessee newspapers
Gannett, the publishing company that owns USA TODAY, closed a $280 million deal Friday to buy Journal Media Group, which adds The Commercial Appeal in Memphis and the Knoxville News Sentinel to the company’s growing national network.
The purchase by Gannett, which also owns The Tennessean in Nashville, was approved by the U.S. Justice Department and officially took effect at 10:59 p.m. Friday. It follows through on Gannett’s hopes to expand its national footprint after it was spun off from its former parent in 2015.
With the acquisition, McLean, Virginia-based Gannett will operate USA TODAY and 107 dailies in 34 states and Guam, in addition to Newsquest in the United Kingdom, with its 150 local digital and print news brands.
“Today’s announcement marks an important milestone as we combine two award-winning media companies with a passion for delivering outstanding news and information, each focused on digital growth across all platforms and devices and being the market leaders in our communities,” Robert Dickey, president and chief executive officer of Gannett, said in a statement.
The acquisition makes the USA TODAY NETWORK in Tennessee one of the largest statewide news groups in the country, with more than 340 journalists working at several locations.
Laura Hollingsworth, president of the new Tennessee network, said the reach “will enable us to provide even deeper enterprise and investigative reporting throughout the state.”
“The company is focused on ex- panding its footprint where it makes good strategic sense — and certainly in Tennessee, we see that,” Hollingsworth said. “By expanding our footprint, we enhance the depth and breadth of our newsgathering capabilities and gain competitive advantages through added reach and increased operational scale across the entire country.”
Hollingsworth cited a recent USA TODAY NETWORK investigation into teachers with troubled pasts as an example of the power of nationwide collaboration. The series, which combined national and local reporting at many of Gannett’s news organizations, detailed how those teachers sometimes cross state lines and are able to continue their careers.
The investigation prompted an audit of teacher-misconduct reports in 50 states and further investigations into eight of them, including Tennessee.
The closing of the deal marks the third corporate owner in just more than a year for The Commercial Appeal, which is celebrating its 175th anniversary this year. The newspaper’s longtime owner, Scripps Howard Newspapers, merged with Milwaukeebased Journal Communications Corp. last April. The companies then split their newspaper holdings, including The CA, into a new company called Journal Media Group.
“In its 175th year, The Commercial Appeal is in good hands with its new parent company,” said Commercial Appeal Publisher George Cogswell III. “The CA is on solid footing so we can continue to be the dominant source of news and information in the market. This is a good day.”
In addition to The Commercial Appeal, Journal Media Group owned the 178-year old Milwaukee Journal Sentinel, 12 other daily newspapers, 18 weeklies and their affiliated websites in 14 markets. Journal Media Group’s shareholders approved the sale March 1.
Gannett will finance the deal through cash and borrowing under the company’s $500 million revolving credit line.
The closing of the transaction follows the receipt of all necessary regulatory approvals and the consent of Journal Media Group shareholders, who receive $12 per share in cash.
Milwaukee-based Journal Media Group common stock ceased trading after the close of market Friday and no longer will be listed on the New York Stock Exchange. Gannett will continue trading under the ticker symbol “GCI.”