PROVIDENCE – New Media Investment Group Inc. and Gannett Co. shareholders have both approved New Media’s more than $1 billion acquisition of Gannett, the companies announced on Thursday.
The companies expect to complete a merger on Nov. 19. The acquisition will be via a mix of cash and stock. The deal was announced in July.
The combination will result in a local news giant that owns more than one-sixth of all daily newspapers in the country.
New Media Investment Group owns and operates several papers in the Rhode Island and Massachusetts market, including The Providence Journal; The Taunton Gazette; The Newport Daily News; The Cape Cod Times; The Herald News, of Fall River; The Worcester Telegram and The Standard-Times, of New Bedford.
“We appreciate the support we have received from New Media and Gannett shareholders for the merger,” said Michael E. Reed, chairman and CEO of New Media in a statement. Reed will maintain his role following the merger. “This combination will create the leading U.S. print and digital news organization, with deep local roots and national scale,” he said. “Together, we will be stronger, with a more viable path to growth for our shareholders and employees, while sustaining journalism in hundreds of markets across the country and enhancing the services we provide to small and midsized businesses nationally.”
New Media is notorious for cutting news staff following its acquisitions of newspapers around the country. However, the company is just one of many organizations that have made significant cuts to news staff in recent years.
Previously, New Media and Gannett said they anticipate about $300 million in cost savings each year from the transaction, which may lead to further cuts to news staffs.
New Media is run by Fortress Investment Group, which in turn is owned by SoftBank Group Corp.
The combined New Media and Gannett entity is expected to operate under the Gannett name.
