The deal would value Journal Media at just under $300 million, people familiar with the matter told the newspaper.
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It was approved by both companies’ boards of directors and is subject to approval by Journal Media Group shareholders.
Gannett CEO Robert Dickey said, “Gannett is excited to be joining forces with an organization that is so respected by their communities and industry”.
He also said that the deal will help in strengthening the vision of both the companies and will help in serving the local markets better by coupling ideas, best practices and content. “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”.
Once the proposed merger with Journal Media Group is completed, the combined company “will benefit from the consolidated functions Gannett has established over the last several years”, Gannett said. Under the terms, Journal Media Group shareholders will receive cash of $12 per share, representing a premium of 44.5 percent over Wednesday’s closing price of Journal Media Group stock on the New York Stock Exchange of $8.30 per share.
Gannett will finance the transaction through a combination of cash on hand and borrowings under Gannett’s $500 million revolving credit facility.
The trade which typically generated Journal Media Group appeared like madness when it occurs – in any case, that wants produce today?
Tribune Media had also jettisoned its newspaper asset in the past.
Journal Media Group had 3,600 employees at the time of the spinoffs of the Scripps and Journal Communications newspaper units.
Gannett will now cover 106 local markets. ised to be an acquirer in an industry ripe for consolidation. The deal will give the media company control of publications in over 100 local markets in the United States.
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The receipt of cash for shares of Journal Media Group will be a taxable transaction for USA federal income tax purposes.
