GateHouse buys Gannett for $1.4B, building newspaper giant

A deal was confirmed on Monday that consolidated more of the newspaper industry.

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Gannett, the publisher of USA Today is being bought by Gatehouse Media for roughly $1.4 billion.

The deal creates a new industry giant that hopes to manage the crisis of print's decline through sheer size.

GateHouse Media is the owners of the Austin American-Statesman, Palm Beach Post and many papers in small- and mid-sized towns.

Reports of a deal involving Gannett have been circulating since May of this year.

TickerSecurityLastChangeChange %
GCIGANNETT CO INC10.81+0.10+0.93%

GateHouse is part of New Media Investment Group, itself a unit of private equity firm Fortress Investment Group.

Fortress' owner is Japanese tech giant Softbank.

GateHouse Media is promising to speed up a digital transformation as readers shift online, while cutting $300 million in costs every year.

According to a study by the University of North Carolina, the U.S. has lost almost 1,800 local newspapers since 2004. Newsroom employment fell by a quarter from 2008 to 2018, according to Pew Research, and layoffs have continued this year.


The combined company would take the Gannett name and keep its headquarters in Gannett's current home of McLean, Virginia. GateHouse's owner New Media is buying Gannett Co. for $12.06 a share in cash and stock.

The Associated Press contributed to this article.