ProJo parent buys Arkansas-based publisher for $102.5M

NEW YORK – The owner of The Providence Journal has purchased Stephens Media LLC, the publisher of 11 daily and 64 weekly and niche publications and associated websites across seven states for $102.5 million. New Media Investment Group Inc., parent of Gatehouse Media, intends to fund the purchase from cash reserves and from an existing credit facility.
Since becoming a publicly traded company in the last year, New Media has spent about $457 million buying community and regional newspaper and website publishers, including the Journal – which it purchased for $46 million in September – and the group that owns the Worcester Telegram & Gazette.
“As we begin 2015, we remain focused on operating the company to drive strong revenue trends while integrating newly acquired assets and assessing future acquisition opportunities,” said New Media President and CEO Michael E. Reed, in a statement. He added that the company was looking forward “to introducing new digital initiatives, such as Propel and BestRide into their markets, while simultaneously continuing their long-standing tradition of providing premier content to the communities they serve”
New Media completed the sale of 7 million shares of its common stock on Jan. 20, netting it about $152 million before subtracting underwriting discounts, commissions and offering expenses.
Wednesday the Journal completed the job cuts that were expected following its purchase by New Media, with the release of 12 copy desk employees. Eight editorial employees were laid off when the deal closed in September, as well as 14 advertising department workers. According the local Newspaper Guild office, another 13 advertising makeup employees were let go in January. The guild represents about 140 editorial and advertising employees at the Journal.

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