Gannett, New Media OK deal

Merger will create USA’s largest media company

Shareholders cleared the way Thursday for New Media Investment Group and USA TODAY owner Gannett to join forces in a deal that will create the largest U. S. media company by print circulation and one that will also vie for the biggest online news audience nationwide.

In separate votes, shareholders of each company approved New Media’s $ 1.13 billion acquisition of Gannett. The companies can now move forward to finalize the deal, which is expected to close Tuesday, “subject to the satisfaction of customary closing conditions,” New Media said in a statement.

The combined company will be called Gannett and will own more than 260 daily publications, as well as hundreds of weeklies. The new company will reach an average monthly online audience of more than 145 million unique visitors, according to traffic measurement firm Comscore.

The deal “gives us a much broader platform on which to build our digital businesses and to help each of these local markets to become engines of growth for us from a digital perspective,” Gannett CEO Paul Bascobert said Thursday at the company’s shareholder meeting, where the vote results were revealed. “Our commitment to build those brands is even stronger than ever.”

The new company’s financial success will hinge on its ability to shed overlapping costs and achieve what it calls a “digital transformation” built on increased revenue from digital products and marketing services. The new Gannett aims to cut $ 275 million to $ 300 million in costs a year within 18 to 24 months in a variety of areas.

In addition to USA TODAY, Gannett owns 109 local media properties operated as the USA TODAY Network – including the Arizona Republic, Detroit Free Press, Milwaukee Journal Sentinel and Indianapolis Star – as well as United Kingdom- based Newsquest Media Group and digital marketing assets like WordStream.

New Media owns 152 daily publications – including The Palm Beach Post, The Columbus Dispatch, The Oklahoman and Austin American- Statesman – as well as 284 weekly newspapers operated as GateHouse Media and digital marketing assets like ThriveHive.

TIM LOEHRKE/ USA TODAY

The combined company after New Media purchases Gannett will be called Gannett and will own more than 260 daily publications, as well as hundreds of weeklies.