Gannett Co. Inc., the owner of USA Today, is closing in on a $280 million deal to purchase Journal Media group, owner of the Milwaukee Journal Sentinel and other newspapers circulated throughout the Midwest and South.
The deal would add Journal Media publications spread over nine states to Gannett's network of 92 mostly small- and medium-market daily newspapers in the U.S., reported Market Watch.
"The publications of both Gannett (GCI) and Journal Media Group (JMG) have a rich history, a commitment to journalism, and a dedication to informing and being active members in the communities we serve," said Gannett CEO Robert Dickey in a statement, according to the Milwaukee-Wisconsin Journal Sentinel. "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."
With a market value of $192 million, Gannett expects to make a lot of money by purchasing Journal Media Group, boosting its annual revenue by $450 million, according to CNN.
"What makes the Journal Sentinel attractive is the fact that it has very strong relationships with advertisers and very strong relationships with its readers," Journal Media Group President and CEO Tim Stautberg said. "I'd expect that Gannett would want to continue to enhance those relationships with resources, with bringing all of the scale that they have to enriching the products that we're offering in our local markets. But at the end of the day here in Milwaukee, it's going to be Betsy Brenner, (Editor) George Stanley - the local leadership - that's going to be making the decisions about how to operate and run this newspaper."
Gannett, which has a current market value of $1.7 billion, expects to complete the acquisition in early 2016.
