Newspaper giant Gannett just got substantially bigger. Gannett, which publishes USA Today, said late Wednesday that it was buying Journal Media Group for $280 million.
Journal Media owns 17 small- and medium-sized newspapers in 9 states, including the Milwaukee Journal Sentinel, Naples Daily News, and the Commercial Appeal, which is based on Memphis, Tennessee. It also owns 18 weekly publications in 14 local markets, encompassing nine states.
Under the terms of the transaction, Journal Media Group shareholders will receive cash of $12.00 per share in cash. Based on the closing price of Journal Media Group on October 7, that represents a premium of nearly 45 percent.
Look for Gannett to digitally cross-pollinate its flagship USA Today, with some of the additional publications now in Gannett’s stable.
“Our merger will combine the best of each of our organizations to create a journalism-led, investor-focused company which will provide substantial value to the shareholders of both companies,” said Robert Dickey, president-CEO of Gannett, said, in a statement. “This transaction is an excellent first step in the industry consolidation strategy we have communicated to our shareholders and is a good example of the value-creating opportunities we believe are available.”
The deal is in keeping with the ongoing roll-up throughout the media, as traditional brands join forces and create scale for consumers and media buyers.
The purchase increases Gannett’s annual revenues by $450 million and its daily circulation by 675,000, the company said.
But with media consolidation comes redundancies and, most likely, layoffs.
PR pros who have relationships with reporters and editors at Gannett’s various publications will throughout the next few months have to pay very close attention to staff cuts, editorial sections they might have pitched in the past that go away, as well as new editorial opportunities that arise.
However, the endgame is probably fewer pitching opportunities, which means PR pros will have to be much more strategic
Journal Media Group was formed in 2015 via a merger of the newspaper operations of The E.W. Scripps Company and Journal Communications Inc.
Spectrum Science acquires clinical trial recruitment and engagement solutions provider Continuum Clinical.
How PR agency owners can navigate the M&A process in a way that yields a rewarding experience for both owners and the teams they leave behind.
Ten potential ways an agency sale can positively benefit team members and employees.
Kekst CNC reps Palladium Equity Partners and its joint venture affiliate, Palladium Heritage, on the acquisition of National Auto Parts, USA;, NAP San Diego; and National Auto Parts-Oakland to form Collision Auto Parts, a platform serving customers in the automotive aftermarket collision repair sector.
ICR has acquired Bullfrog + Baum, the 23-year-old PR shop focused on the hospitality, lifestyle, travel and consumer marketing sectors.
Have a comment? Send it to 
No comments have been submitted for this story yet.