Gannett shareholders have approved the company’s $1.2 billion merger with New York-based New Media Investment Group, the parent company of GateHouse Media, with the combination expected to be final next week.
New Media shareholders have already approved the merger, as have regulators.
When complete, it will create a publishing giant with a combined total of nearly 600 daily and weekly newspapers. Gannett and GateHouse are already the two largest newspaper publishers in the U.S.
Combined, the two also have more than 24,000 employees.
Neither company has addressed concerns about layoffs after the merger is complete, though they have said the combination will result in $275 million to $300 million in “annual cost synergies.” When the merger was announced, New Media said in a statement that the “strategically-aligned leadership is committed to expanding and promoting digital offerings and high-quality journalism.”
Gannett’s newspapers include USA Today, The Detroit Free Press and Arizona Republic. GateHouse’s papers include The Palm Beach Post, The Austin American-Statesman and The Akron Beacon Journal.
Both companies also have significant online news site holdings.
The merged company will use the Gannett name. Michael Reed, New Media Investment Group CEO, will be Gannett’s new chief executive.
“We believe this transaction will create value for our shareholders, greater opportunities for our employees and a stronger future for journalism,” Reed said in a statement when the deal was announced in August.
Gannett had $2.9 billion in 2018 revenue; New Media, $1.5 billion.
