USA Today publisher Gannett agreed to a merger Monday with rival GateHouse in a deal bringing together two of the largest newspaper groups seeking scale in the troubled sector.
GateHouse parent New Media Investment Group will buy Gannett in a cash-and-stock transaction valued at around USD 1.4 billion that creates a media company with 263 dailies and reaches 145 million customers.
"We believe this transaction will create value for our shareholders, greater opportunities for our employees, and a stronger future for journalism," said Michael Reed, New Media chairman and chief executive.
"Uniting our talented employees and complementary portfolios will enable us to expand our comprehensive, hyperlocal coverage for consumers, deepen our product offering for local businesses, and accelerate our shift from print-centric to dynamic multimedia operations.