Fortress, which is owned by Japanese conglomerate SoftBank, negotiated a breakup fee to step aside at the end of 2021. efforts to put its nominees on its board, after it rejected MNG's $1.36 billion hostile takeover bid. They created a news website called Phoenix New Media, which was renamed New Media Investment Group in 2008. Gannett on Wednesdaynamed a mix of leaders from the old Gannett and its acquirer, New Media Investment Group, to lead the media company. "We have been working hard on integration planning, and we are now even more confident in our ability to realize the high end of the range in savings and within the 18- to 24-month period we previously stated," he said. Active, Closed, This describes the type of investor this organization is (e.g. "Youll definitely get some economies of scale" and "a lot of savings in the corporate offices" and printing sites, he said. 2023 Forbes Media LLC. Bernie Szachara, previously president of newspaper operations for GateHouse, who will serve as president of U.S. publishing operations. Some are autonomous territories or constituent countries, while some are administered almost entirely as part of the parent country. Gannett is an innovative, digitally-focused media and marketing solutions company with well-known brands worldwide. Information about the directors and executive officers of New Media is set forth in the proxy statement for its 2019 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2019. It is expected that the dividend will be increased over time as synergies are realized and leverage is reduced. Kirk Davis, operating company CEO;[2] See here for a complete list of exchanges and delays. In the restructured plan, Gatehouse stock was cancelled and a new holding company for the parent, New Media Investment Group, Inc., was formed. (203) 307-2250 Alexas top sites under the category of news (U.S. only, excluding user-generated). [28], In February 2018, GateHouse announced the acquisition of Kirk Davis's independently owned Holden Landmark Corporation for an undisclosed sum. Twins Haley and Hanna Cavinder have been the face of name, image and likeness since its inception, and now they're charting a course for transitioning to a career in content creation. Both New Media and its operating subsidiary GateHouse will be rebranded and operate under brand Gannett. 2,000 employees from 40 countries. The breadth and depth of each companys digital offerings will make the combined company a leading digital media player and a stronger partner for advertisers and SMBs. Media: Additionally, the joining of New Medias UpCurve and GateHouse Live businesses with Gannetts ReachLocal and WordStream subsidiaries will provide multiple, diversified marketing and revenue solutions and position the combined company as a stronger partner for advertisers and small businesses (SMBs) in the markets served. "In digital form, the USA TODAY Network is one of the reasons to do this deal," Doctor said. The companies can now move forward to finalize the deal, which is expected to close Tuesday, Nov. 19, "subject to the satisfaction of customary closing conditions," New Media said in a statement. 25, New Media Investment Group is managed by New York-based firm Fortress Investment Group through an affiliate. The largest hosting company in Europe. That said, until the issue of monetization is definitively sorted out, consolidation may be the only way to keep the presses from stopping. [26], In October 2017, GateHouse acquired Edward A. Sherman Publishing Company, parent of The Newport Daily News. The rest of the combined companys senior executive team, which is expected to be composed of highly experienced leaders from both companies, will be announced at a later date. The company was founded on June 18, 2013. In November 2019, New Media Investment Group (which owns the legacy GateHouse Media assets) purchased Gannett, changing the name of the combined company to Gannett Co., Inc. and keeping the GCI stock ticker. Christopher Ruddy became the CEO of the company and decided to take it in a new direction. The . At first it was used by passing ships as a replenishment spot, but the English eventually settled it in the 17th century. The newspapers were operated by GateHouse Media following the purchase. The British still maintain many ties to several territories in the Caribbean (formerly the British West Indies) while French influence stretches from the Pacific to South America. Vox Media recently inked a deal to acquire New York Media, the firm behind New York Magazine, Vulture, and The Cut. Investors: [22], In November 2016, GateHouse announced the purchase of Harris Enterprises, based in Hutchinson, Kan., which operated six daily newspapers in Kansas and Iowa. Alison Engel expected to become Chief Financial Officer; the combined companys ability to grow its digital marketing and business services initiatives, and grow its digital audience and advertiser base. There are a total of 73 overseas territories listed on the map spread across the world. Engel's role was announced previously. [25], In August 2017, GateHouse announced it was purchasing 11 daily newspapers, 30 weeklies, and other assets from Morris Publishing Group, a division of Morris Communications. The actual results, liquidity and financial condition may differ from the anticipated results, liquidity and financial condition indicated in these forward-looking statements. With the advent of technology and the globalization of markets, investors have more choices than ever. Gannett Co., Inc. (NYSE: GCI) is an innovative, digitally focused media and marketing solutions company committed to strengthening communities across its network. The deal "gives us a much broader platform on which to build our digital businesses and to help each of these local markets to become engines of growth for us from a digital perspective," Gannett CEO Paul Bascobert said Thursday at the company's shareholder meeting, where the vote results were revealed. He has said he's confident of hitting the savings target. 'Pivot' needed for digital transformation as merger is completed, Shareholders of USA TODAY owner Gannett and New Media Investment Group approve merger, New Media and Gannett announce board of directors for combined company, Your California Privacy Rights / Privacy Policy. Todays graphic, created by TitleMax, is a broad look at who owns U.S. news media outlets. 5, Michael E. Reed is the president and CEO of New Media Investment Group. "There are a lot of vultures circling the industry right now, and Mike is not one of them.. Website http://www.mediainvestmentgroup.com Industries Investment. Information about the directors and executive officers of Gannett is set forth in the proxy statement for its 2019 Annual Meeting of Stockholders, which was filed with the SEC on March 26, 2019. At the same time, Gordon said he has confidence in Reed's leadership of the new company. The combined companys management team will be led by New Medias current Chairman and Chief Executive Officer, Michael Reed. Stock ticker symbol (e.g. Arbor Advisory Group Such forward-looking statements speak only as of the date on which they are made. Bonus Gift: Celebrating the Best of the VC+ Archive, More U.S. Tech Companies are Adopting Unequal Dual-Class Voting Structures, How Gen Z Feels About Its Financial Future, Interested in an overview of who leads countries around the world? As part of the combination, New Media Investment Groups operator, Fortress Investment Group,will continue to operate the combined company. 10 proprietary, georedundant ISO 27001 certified data centers. The combined group of business publications was rebranded as BridgeTower Media.[18]. Including the announced acquisitions, New Medias portfolio of products, which will include 449 community publications, 366 related websites, and six yellow page directories, will serve more than 130,000 business advertising accounts and will reach over 12 million people on a weekly basis. Jay Fogarty, previously senior vice president for corporate development at GateHouse, who will serve in that role for the new company. Gatehouse, now called Gannett, has been operated by Fortress Investments, a New York private equity firm, in turn owned by Softbank, the diversified Japanese tech firm. While New Media reported revenue of $404 million in its second quarter on Monday, Gannett had revenue of $660 million. (703) 854-3168 Stockholders of New Media and Gannett are urged to read all relevant documents filed with the SEC, including the Registration Statement and the Joint Proxy Statement, as well as any amendments or supplements to these documents, carefully when they become available because they will contain important information about the proposed transaction. The company has been in communication with the NYSE regarding its noncompliance with continued listing standards, but was unsuccessful in its efforts to avoid suspension and delisting. Gannetts newly appointed Chief Executive Officer, Paul Bascobert, will become Chief Executive Officer of the combined companys operating subsidiary. "If it turns out that the management team doesnt hit their plans, theyll be more assertive as time goes on," Hynes said of Apollo. ", Warning to Congress: Powell: USdebt is 'on unsustainable path', Walmart's Black Friday:Store releases ad with $129 Apple Watch, TV deals. New York-based New Media Investment Group Inc., which runs the Gatehouse chain of local community newspapers, announced it was acquiring newspaper publisher Gannett for about $1.34 billion in cash . New Media and Gannett are the largest U.S. newspaper owners by circulation, according to Statista. He told the Chicago Tribune last year . Key executives, who will report to Bascobert, include: In addition, Henry Faure Walker will serve as CEO of Newsquest Media Group, a publishing arm in the United Kingdom. Initially, the combined company is expected to have an annual dividend of $0.76 per share. New Media and Gannett will co-host a conference call to discuss the transaction and second quarter earnings on August 5, 2019 at 4:15 p.m. Eastern Time. This match-up seems awkward on the surface, but it allows advertisers to reach a broader cross-section of people within each ad ecosystem. Gannett said it will later fill the chief marketing officerrole. He previously was CEO of New Media. Adam Reinbach will serve as president and CEO of BridgeTower Media, which produces business, home furnishings,legislative and other digital and print publications and events. "A lot of the focus in the early days will be on integration and cost savings, and the key to success will end up being how much of those cost savings are they able to ultimately plow back into the product itself and serving the local communities," saidSilberman, a former general manager of digital media at New York Media, the parent company of New York magazine. I suspect broad social media sites could lose a lot of steam in the future as more dedicated sites meeting the needs of people with similar interests will become more popular. We see numerous opportunities to leverage the combined companys enhanced scale and financial strength to continue to drive growth in the digital future. AAPL, FB, TWTR), Total number of diversity investments made by an investor, Total number of employee profiles an organization has on Crunchbase, Total number of organizations similar to the given organization, Descriptive keyword for an Organization (e.g. On September 27, 2018, GateHouse Media announced the acquisition of The Oklahoman Media Company, parent company of The Oklahoman, which is the state's largest daily newspaper, for an undisclosed amount from The Anschutz Corp. Mr. Bascobert joined Bloomberg from Dow Jones & Co. where he was Senior Vice President of Operations from 2006 until 2007 and Chief Marketing Officer from 2007 until 2009. The webcast replay of the conference call will also be available approximately two hours following the completion of the call on the Investor Relation section of each companys website. The layoffs will primarily affect management positions. Aug 5, 2019 Speculation became reality Monday with official word that the Milwaukee Journal Sentinel's owner will be sold to New Media Investment Group Inc. of New York City, which until. "The whole goal is to get rid of that," he said. Timeline: Cannabis Legislation in the U.S. Visualizing the Relationship Between Cancer and Lifespan, Visualizing How COVID-19 Antiviral Pills and Vaccines Work at the Cellular Level, Global EV Production: BYD Surpasses Tesla. The industry may be facing another dramatic drop off in ownership diversity as the two largest players, New Media Investment Group and Gannett, are on the path to merging. Are The Days Of Organic Social Media Reach Over? (Reuters) - Local media company New Media Investment Group NEWM.N said on Monday it will buy USA Today-owner Gannett Co GCI.N in a $1.4 billion deal, creating the biggest newspaper owner. [21] In December 2015, GateHouse sold the Las Vegas Review-Journal, the Stephens group's largest paper, to casino magnate Sheldon Adelson for $140 million. Fortress owned 52% of GateHouse debt. This combination will create a broad network of talented, experienced journalists poised to deliver unique and award-winning content for local communities and national audiences. At the forefront of intellectual property valuation, acquisition and utilization, the Concord investment underscores the partners' belief in the lasting and appreciating global value of superior original creative content. (212) 479-3160 After the close of the transaction, Gannett shareholders will hold approximately 49.5% of the combined company and New Media shareholders will hold approximately 50.5%. In January 2015, GateHouse purchased the 36 newspapers of the Halifax Media Group for $280 million. Gasthalter & Co. Heres a brief look at some of the best known territories on the list: First colonized by Spain in the 16th century, the U.S. occupied the North Pacific islands in the aftermath of the SpanishAmerican war (along with Puerto Rico and the Philippines). The majority is always wrong; the minority is rarely right. The breadth and depth of each companys digital offerings will make the combined company a leading digital media player. [4] Immediately after the merger was finalized, all GateHouse Media URLs began redirecting to Gannett.com. Analysts are split on whether the company can pull off the savings, which are critical to paying off a $1.8 billion loan that New Media obtained from private equity firm Apollo Global Management to help finance the deal. Visualizing the Flow of Energy-Related CO2 Emissions in the U.S. New Media shareholders will own 50.5% of the combined company, while Gannett stockholderswill own 49.5%. Faced with declining revenue, Gannet has invested millions in the last few years to scale up its digital footprint. Gannett brands include USA TODAY NETWORK with the iconic USA TODAY and more than 100 local media brands, digital marketing services companies ReachLocal, WordStream and SweetIQ, and U.K. media company Newsquest. New Media, operating as Gatehouse Media, has also expanded its investigative reporting team. New Media Investment Group to Acquire Gannett Two Leading Media and Marketing Solutions Companies Align to Preserve and Enhance Quality Journalism Creates the leading U.S. print and. 1. Arthur said he believes the combined company's revenue projections are "way too optimistic" due to the continued demise of print. Doctor said Gannett's success with the development of the USA TODAY Network, which shares journalism resources and national ads, is also key. Mapped: The State of Democracy Around the World, Mapped: The Largest 15 U.S. Cities by GDP, Visualized: The Most (and Least) Expensive Cities to Live In, Mapped: The Population of Indias States Compared with Countries, Charted: 30 Years of Central Bank Gold Demand, Visualizing U.S. or Consumption of Fuel and Materials per Capita, The Periodic Table of Commodity Returns (2013-2022), Visualizing 25 Years of Lithium Production, by Country, Ranked: The Worlds Largest Copper Producers, Mapped: Air Pollution Levels Around the World in 2022. [31] The Beacon Journal is a daily newspaper tracing its storied, Pulitzer Prize-winning history to 1839's Summit Beacon, which early in the 20th century came under the editorship and ownership of publisher Charles Landon Knight, serving as the flagship newspaper of the Knight Newspaper Company, later known as Knight Ridder.[32]. Target net leverage within two years of closing is expected to be below 1.75x. 26. Bill Church, Senior VP News; Liberty Group Publishing was formed in 1998 when Kenneth L. Serota, a former Hollinger International attorney with backing from Leonard Green & Partners, bought 160 community newspapers from Hollinger. JPIMedia The Scotsman While not ideal, the latter option at least provides a potential route to revenue and cost synergies that make it easier to compete in a challenging environment. Shares of Gannett closed up 2.6% at $11.04, while those of New Media Investment Group closed down 7.6% at $9.89. To ensure the most secure and best overall experience on our website, we recommend the latest versions of. 11 12 As GateHouses parent company, New Media operated as many as 144 daily newspapers, 684 community publications, and 569 local market websites in 38 states. It listed assets of $433.7 million and debt of $1.3 billion. In addition to its national presence through USA TODAY, the new Gannett will operatenews organizations in 47 states and Guam, as well as the United Kingdom. These options become exercisable upon the first trading day immediately following the first 20 consecutive trading day period in which the closing price of New Medias common stock (on its principal U.S. national securities exchange) is at or above $20 per share, and also upon a change in control and certain other extraordinary events. The company, which also owns local papers ranging from the Detroit Free Press to the El Paso Times, missed second-quarter revenue on Monday. The amendment, as described in more detail below, also reduces the incentive fee rate payable to the Manager for the remainder of the term. To finance the deal, New Media is borrowing $1.8 billion from private equity firm. Total pro forma leverage at closing of the Merger is expected to be approximately 3.5x LTM As Adjusted EBITDA, before run-rate synergies, and 2.3x including run-rate synergies. The next name on the list is Alex Waislitz, founder and Chairman of the Australian-based Throney Investment Group, which owns 169 outlets, including The Advertiser, The Canberra Times, and Illawarra Mercury. New Media and Gannett believe that a digital transformation of the newspaper industry is vital to the preservation of journalism, and the Merger will accelerate the combined companys digital transformation. Thousands of American communities that had local newspapers in 2004 now have no news coverage at all, while remaining papers are increasingly becoming units within an umbrella company, with no direct stake in community reporting. In the third quarter, Gannett's digital subscriptions rose 27% to 607,000, compared with the same period a year earlier, while New Media's rose 65% to 217,000 over the same stretch. As an overseas map, it also excludes territories sharing a border, or that are part of a larger state or province (like Germanys Heligoland, part of the state of Schleswig-Holstein). In a joint interview, Reed and Bascobert said they assembled their executive team with an eye on cohesion as the company aims to become a digital media powerhouse. It is one of the many French Overseas Territories that together are home to 2.6 million people. Mapped: Asias Biggest Sources of Electricity by Country. If shareholders give the thumbs-up during the vote this November, Gannett will have amassed the largest online audience of any American news provider. The combined company will be headquartered in McLean, Va., with a continued corporate presence in existing locations. Stacy Cunningham, Gannett Vice President, Financial Planning & Investor Relations New Media Investment Group's mailing address is 1345 AVENUE OF THE AMERICAS, NEW YORK NY, 10105. [citation needed], In June 2005, Fortress Investment Group bought Liberty for $527 million. Two Leading Media and Marketing Solutions Companies 3. digital offerings and high-quality journalism, Anticipated run-rate cost synergies of $275 - $300 million annually, In recent years, Gannett has pursued a unified journalism and business strategy through the promotion of the USA TODAY Network, which includes all of its U.S. publications. With strategically-aligned leadership and significant scale of operations, the Merger will accelerate the combined companys digital transformation. Mike Reed will serve as CEO of the newly. Earlier this year, Gannett fended off newspaper chain MNG Enterprises's MNGE.PK efforts to put its nominees on its board, after it rejected MNG's $1.36 billion hostile takeover bid. CEOs of new Gannett:'Pivot' needed for digital transformation as merger is completed, Deal approved:Shareholders of USA TODAY owner Gannett and New Media Investment Group approve merger, New board:New Media and Gannett announce board of directors for combined company. For example, the LA Times is now in the hands of its third owner since 2000, after being purchased by billionaire biotech investor Patrick Soon-Shiong. As of early 2022, Gannett was seeking an early buyout of Fortress's outside management role. Together, the new company's publications and digital marketing services will be under pressure to stem revenue declines. New Media will also grant the Manager approximately 3.2 million options with an exercise price of $15.50, a 45% premium to the closing price of New Media common stock on August 2, 2019. Before that, he spent four years at Bloomberg LP as President of Bloomberg Businessweek from 2010 until 2014, in addition to serving as Chief Operating Officer of the Media Group from 2011 to 2014. The buyer is New Media Investment Group, Inc., formerly Gatehouse Media, which is the largest newspaper publisher in the United States by number of titles. At least 82% of Gannett's shares werevoted in favor of the deal, Gannett chairman J. Jeffry Louis said. New Media is focused primarily on investing in a high quality, diversified portfolio of local media assets. Some billionaires, like Rupert Murdoch and Michael Bloomberg are longtime media moguls who made their fortunes in the news business. During his tenure, he helped lead the companys transformation from a media company to a marketplace business. To connect with Gannett, visit www.gannett.com. IFM Investors is one of the few truly aligned fund managers in the world. Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger. unlocking meaningful shareholder value, New Medias external management agreement to be amended at closing and terminated in 2021. Southern Kitchen, launched by Cox Media Group (CMG) in 2017, is a blend of e-commerce and content. T, and has built the largest chain of local U.S. papers, including 156 dailies from the Austin American-Statesman to the Register-Guard in Eugene, Oregon. Prior to XO, Mr. Bascobert led sales, service, and marketing for the Local Businesses segment at Yodle from 2014 until 2016. More than half of the overseas territories were in either the Pacific Ocean (21) or the Caribbean (18). The biggest media conglomerates in America are AT&T, Comcast, The Walt Disney Company, National Amusements (which includes Viacom Inc. and CBS), News Corp and Fox Corporation (which are both owned in part by the Murdochs), Sony, and Hearst Communications. [7], On September 4, 2013, News Corp announced that it would sell the Dow Jones Local Media Group, a group of 33 local newspapers, to Newcastle Investment Corp, an affiliate of Fortress, for $87 million. All interested parties are welcome to participate. This scale will meaningfully enhance the combined companys financial profile by leveraging nationwide reach and local presence to expand and deepen relationships with consumers and businesses. Supplemental information regarding the transaction will be posted to the Investor Relations section of each companys website. After the merger closes, expected by the second half of 2019, New Media will hold about 50.5% stake in the combined company, to be led by Reed. In August 2019, it was announced that New Media Investment Group had reached an agreement to merge Gannett into GateHouse Media. Gannett Co., Inc. is a subscription-led and digitally focused media and marketing solutions company committed to empowering . New Media CEO Mike Reed, who will become CEO of the new Gannett, told investors on Oct. 31 that "we feel great about the synergies.". Reporting by Vibhuti Sharma in Bengaluru; Editing by Shinjini Ganguli. But Apollo believes that the new Gannett can afford to pay the debt off on time or potentially early with no prepayment penalty, according to people with knowledge of the Apollo financing deal who spoke on the condition of anonymity because they were not authorized to speak publicly. Its no secret that news media is a tough industry. New Media formed the Transaction Committee to review, evaluate, and negotiate the Merger and the Internalization (including the terms of the Amended Management Agreement). Along with our owners - 17 world-leading pension funds - and other like-minded investors, we believe in the power of bold, long-term and sustainable investment commitments and strategies that aim to deliver results, which ultimately enhance people's retirement . Nov 2019 - Present3 years 6 months. Gatehouse re-emerged from the planned bankruptcy in November 2013. Edit Lists Featuring This Company Section, New Media and Gannett Announce the Board of Directors for the Combined Company, New Media Announces European Commission Regulatory Clearance for Merger with Gannett, Greater New York Area Public Companies With More Than $100M in Revenue, East Coast Public Companies With Less Than $1B in Revenue, Northeastern US Public Companies With More Than $100M in Revenue, East Coast Public Companies With More Than $500 in Revenue. Copyright 2023 InfluenceWatch. Kevin Gentzel, previously president of USA TODAY Network Marketing Solutions, who will serve as chief revenue officer. Its parent company, New Media Investment Group, merged with Gannett in 2019. Kris Barton, previously Gannett's chief product officer, who will take on the same role. As a result, we will accelerate the growth of the combined companys digital revenue through innovative customer experiences and new marketing solutions for businesses, while creating an expansive journalism network with the resources required to deliver unique and award-winning content. Where are Clean Energy Technologies Manufactured? The Amended Management Agreement, which will become effective upon the closing of the Merger, provides for the following key changes: Establishes a termination date of December 31, 2021, for the Managers services in lieu of annual renewals of the term; Reduces the incentive fee rate from 25% to 17.5% for the remainder of the term; Reduces by 50% the number of options that would otherwise be issuable in connection with the issuance of shares as consideration for the Merger, and imposes a premium on the exercise price; Eliminates the Managers right to receive options in connection with future equity raises; and. [23] In February 2017, GateHouse purchased the Dix Communications newspaper chain for $21.2 million. Advance Local Publications (22 dailies). The Term Loan will be freely pre-payable without penalty, and the combined company is expected to have a strong cash-flow profile that will permit aggressive deleveraging. 23 Reed has faced criticisms in the past from the NewsGuild, an affiliate of the left-wing Communications Workers of America labor union, for purchasing newspapers, consolidating editorializing responsibilities, and cutting jobs to increase profits. [29], In March 2018, GateHouse announced its $47.5 million purchase of the Austin American-Statesman of Austin, Texas. (212) 355-4449, Internet Explorer presents a security risk. Sam Levenson Note: The graphic has been updated to reflect changes in ownership for Refinery29, Gizmodo, and Jezebel. In separate votes, shareholders of each company approved New Media's $1.13billion acquisition of Gannett. All Rights Reserved. Ranked: Americas Most Searched and Visited News Sites by State. With their capital, family offices play a significant role in shaping the future of wealth management and have an opportunity to lead in sustainable investments. Unsurprisingly, two great empires of the pastBritish and Frenchstill have largest remnants of their past breadth. The new Gannett has more than 250 daily publications, including USA TODAY, as well as several hundred weeklies and an array of digital marketing services.
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