|Bid||8.39 x 900|
|Ask||0.00 x 800|
|Day's Range||8.35 - 8.55|
|52 Week Range||7.08 - 16.25|
|Beta (3Y Monthly)||1.14|
|PE Ratio (TTM)||646.92|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.52 (18.23%)|
|1y Target Est||11.00|
After 26 years at the Worcester Telegram & Gazette, columnist Clive McFarlane was laid off this week by parent company GateHouse Media, prompting Mayor Joseph Petty to declare, "There is no more real newspaper in the city of Worcester.”
Q2 2019 New Media Investment Group Inc Earnings and Acquisition of Gannett Co Conference Call
The merger of the two largest newspaper chains in the U.S. could be rejected by shareholders unless GateHouse Media's parent, New Media Investments, can manage to significantly raise its stock price in coming months.
(Bloomberg) -- Apollo Global Management LLC co-president Jim Zelter knows what many on the Street are thinking.Why would a private-equity firm -- whose name is synonymous with acquiring struggling businesses on the cheap and turning them around for huge profits -- make a $1.8 billion loan to a company in the beleaguered newspaper industry if it didn’t expect to own it one day?When it comes to the financing of New Media Investment Group Inc.’s takeover of Gannett Co., he insists that’s not the plan. In fact, Zelter, a former banker who led the expansion of Apollo’s credit investment arm, says the rationale behind the firm’s largest-ever direct-lending commitment is simple: He believes the new company can thrive.“This was always meant to be a performing loan,” he said in a phone interview. “It’s not a distressed-for-control transaction.”Zelter -- who oversees about $200 billion of credit investments, more than double Apollo’s entire private equity portfolio -- says the transaction is a vote of confidence in New Media Chief Executive Officer Mike Reed and his track record in acquiring and managing media assets.Yet that confidence comes at a steep price for the longtime news executive, who will take control of USA Today and major metro publications such as the Arizona Republic and Detroit Free Press once the Gannett acquisition closes.The combined company will pay a 6.5% arranging fee for the five-year loan and an annual interest rate of 11.5%, according to regulatory filings. Apollo is expected to pocket the majority of the fee by funding the loan at a discount of 95 cents on the dollar, according to a person with knowledge of the matter who asked not to be named because the details are private.A spokesman for New Media declined to comment. A spokesman for Apollo declined to comment on the fee.“The merger has a lot of industrial logic,” Zelter said. “We believe Mike and his team will make the right moves in terms of being thoughtful about digital strategy and the manner they will operate the business going forward.”The loan to New Media is one of many investments Apollo has made in out-of-favor sectors in recent years. Its private equity arm has bought DVD kiosks, penny-counting machines and discount grocery stores. As with all high-risk businesses, there’s always the possibility that things won’t work out as planned.Looking at the interest rate, “you have to assume there is a lot of risk there,” Howard Marks, co-chairman of distressed-debt manager Oaktree Capital Group LLC, said in Bloomberg TV interview Thursday. “I would be surprised to learn that it’s loan-to-own, but depending on how risky the proposition is I’m sure that not getting paid and instead ending up as an owner must factor into the picture.”\--With assistance from Erik Schatzker.To contact the reporter on this story: Davide Scigliuzzo in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Natalie Harrison at email@example.com, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
New Media's merger with Gannett was so poorly received that the possibility of its falling through could be boosting the stock.
The initial reviews are negative on the planned sale of Milwaukee Journal Sentinel owner Gannett Co. Inc. to New Media Investment Group — as are the companies’ stock prices — with the New York Post reporting the deal “could be derailed.”
The value investor increased his position as the company announced it would acquire news giant Gannett Continue reading...
The headquarters of USA Today were evacuated Wednesday after what authorities said turned out to be a mistaken report of a person with a weapon, the newspaper reported. USA Today said police are continuing to investigate, but there has been no evidence of shooting and police have not located anyone with a weapon. USA Today's parent company Gannett Co. Inc. and New Media Investment Group Inc. said Monday they plan to merge.
NEW YORK, Aug. 07, 2019 -- The following statement is being issued by Levi & Korsinsky, LLP: To: All Persons or Entities who purchased Gannett Co., Inc. (“Gannett” or the.
Terms call for each Gannett share (ticker: GCI) to be exchanged for $6.25 a share in cash and 0.5427 of a New Media share (NEWM). After the deal closes, current Gannett shareholders would own 49.5% of the combined company with New Media shareholders owning the other 50.5%. The combined company will take the Gannett name.
NEW YORK , Aug. 6, 2019 /PRNewswire/ -- Rowley Law PLLC is investigating potential claims against Gannett Co., Inc. (NYSE: GCI) and its board of directors for breach of fiduciary duty concerning the proposed ...
(Bloomberg) -- Apollo Global Management LLC has made its most significant move yet to encroach on a corner of finance long dominated by Wall Street banks.The private equity firm has agreed to provide nearly $1.8 billion of debt financing to support New Media Investment Group Inc.’s acquisition of Gannett Co., in a deal that will bring USA Today and over 200 other publications under the same roof.The loan is the largest direct-lending commitment ever undertaken by Apollo and one of the biggest ever arranged outside of Wall Street to finance a corporate takeover, according to a person familiar with the matter who asked not to be named because the details are private.New Media also had bank financing available for the acquisition, but the debt provided by Apollo ended up being more attractive, another person said. Structured as a five-year senior secured term loan paying an interest rate of 11.5%, the loan would make Apollo the combined company’s only major creditor.The deal underscores the inroads private equity firms and other direct lenders are making in originating corporate loans, often in competition with traditional investment banks. Apollo has the largest credit-investing business among its private equity rivals, with around $200 billion under management as of the end of June.Transactions of this size are typically financed in the broadly-syndicated loan market, where groups of banks arrange deals and distribute them to institutional investors. But direct lenders have become an attractive alternative for companies seeking to secure financing quickly, especially during times of increased volatility in public markets, even though they often charge higher interest rates.Unitranche loans like Apollo’s, which meld first-priority and subordinated claims into one, have grown in size and popularity in recent years, as investors such as pension funds and insurance companies pour hundreds of billions of dollars into private debt funds. They are attractive for lenders because they don’t divide creditors into different classes, making any negotiations with the company -- and restructurings -- easier.Proceeds from the Apollo loan, which can be prepaid with no penalty, will be used to fund the cash component of the purchase price as well as to repay New Media and Gannett’s existing debt, the companies said in a statement.Total debt at closing will be equivalent to 3.5 times a measure of earnings for the combined company. Management said it expects to achieve $275 million to $300 million of annual costs savings, which would bring that ratio to around 2.3 times. Executives expect to realize the vast majority of those savings within two years of closing.(Updates with scope of committment in third paragraph and details of loan starting in fourth paragraph)To contact the reporters on this story: Davide Scigliuzzo in New York at firstname.lastname@example.org;Nabila Ahmed in New York at email@example.comTo contact the editors responsible for this story: Natalie Harrison at firstname.lastname@example.org, Dawn McCarty, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Better the devil with money than the devil without it.USA Today publisher Gannett Co. announced late Monday that it would sell itself to New Media Investment Group Inc. in a cash-and-stock deal valued at $1.9 billion including debt, or about $12.06 a share based on last week’s closing prices. The agreement combines the two largest newspaper publishers in America and comes just three months after Gannett successfully rebuffed a proxy fight launched by an Alden Global-backed newspaper group in a bid to force the board to consider its $12 a share takeover offer.In that fight, Gannett lambasted Alden’s penchant for aggressive cost cutting and seemingly endless journalist firings, saying these practices undercut “papers’ ability to produce quality journalism and retain subscribers.” But New Media is hardly a neophyte when it comes to cost cutting. At the end of the day, it appears it was really just about the money. New Media has clinched a term loan from Apollo Global Management to fund the takeover, whereas Alden’s bid lacked any firm financing commitments. Put another way, New Media was able to afford a Gannett takeover; Alden wasn’t.The $300 million in annual savings New Media is targeting from the merger of its GateHouse Media operations with Gannett is a huge number and implies a dizzying level of cost cuts. That’s nearly 7% of the companies’ combined sales over the past year. By comparison, when Gannett pursued Tribune Publishing Co. in 2016, the only public synergy number the company gave was $50 million. Gannett indicated at various points that the ultimate savings could be higher, but there’s no reason to think that in that contentious battle, the company was withholding the fact that synergies could in fact be six times as high.For the sake of argument, let’s say Gannett was really eyeing something more like $100 million in cost savings from a Tribune deal. That would have been a little over 2% of Tribune and Gannett’s combined sales in 2016. Another key difference is that at that point in time, Tribune was a relatively fatty newspaper company and needed some operational improvement. Gannett and GateHouse’s cost cuts will come on top of years’ worth of trimming.The companies say the savings will come from the increased scale of the organization, the sharing of best practices, leveraging existing infrastructure, facility rationalization and other “judicious” cost reductions, which I’m going to assume is a euphemism for job cuts. Against this backdrop of heavy cost cutting and the need for consolidation to survive, New Media does appear to be cutting its dividend, but the company expects to raise the payout over time as it repays debt.Speaking of debt, you know who doesn’t have very much of it anymore? Gannett’s former would-be partner, Tribune. The company had a net cash balance at the end of 2018 and just $48 million of net debt as of March, according to data compiled by Bloomberg. Recall that Tribune had reportedly attempted to rekindle merger talks with Gannett in the weeks before Alden-backed MNG Enterprises Inc. launched its pursuit of the company. Gannett staunchly defended its digital initiatives amid criticism from Alden about a lack of return. While it claims the New Media deal will help it accelerate its investments on that front, it remains unclear to me why it wouldn’t be preferable to tap Tribune’s relatively pristine balance sheet. A deal with Tribune is hardly without its own share of risks, though, in a time of declining circulation and advertising dollars.At the end of the day, I’m not sure there are any great options left for newspaper companies. New Media shares fell 7.6% on the news of the Gannett merger Monday and were down as much as an additional 17% on Tuesday. It's a sign that investors have their doubts about the companies’ ability to achieve the deal’s purported benefits. The decline also puts the offer price well below the $12 Alden Global had offered (albeit without ever giving a firm indication of the financing to back that up). This deal may be all about the money, but it says a lot that Gannett, the largest newspaper publisher by circulation, now views itself as a seller in this environment.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
When the details behind the long-rumored merger of the nation’s two largest newspaper chains were finally announced Monday, it became clear that private equity will once again play a big role.
U.S. stock futures rise Tuesday, following Wall Street's worst day of the year, as China attempts to ease trade tensions with the U.S., Walt Disney to report earnings Tuesday; Barneys New York files for bankruptcy protection.
New Media Investment Group Inc. (NYSE: NEWM) and USA Today parent company Gannett Co., Inc. (NYSE: CGI) announced a definitive merger agreement Monday. Per the agreement, Gannett shareholders will receive $6.25 in cash and 0.5427 of a New Media share for each Gannett share they hold.
(GCI) publisher of USA Today and many other newspapers, agreed to be acquired by (NEWM) the parent of the newspaper holding company GateHouse Media, for $12.06 a share in cash and stock, or just under $1.4 billion. Each Gannett share (ticker: GCI) will be exchanged for $6.25 in cash plus 0.5427 of a New Media share (NEWM). Current Gannett holders will own 49.5% of the combined company and New Media shareholders will own 50.5%.
(Bloomberg) -- New Media Investment Group Inc. agreed to acquire Gannett Co. in a $1.38 billion deal that unites the two biggest U.S. daily newspaper chains in an industry that’s consolidating to survive.The merged entity will be a local news giant that owns more than one-sixth of all daily newspapers in the country, including USA Today, and reaches nearly 9 million print readers, according to industry analyst Ken Doctor. All told, it will have 263 daily media outlets across 47 states.The acquisition also sets the stage for further cutbacks in an industry already reeling from them. The companies said the deal will better allow them to provide marketing services to local businesses, deliver local journalism to communities and transition to a digital future. But they also said they anticipate about $300 million in cost savings each year from the transaction, which could lead to further cuts to news staffs. The combined company said it would invest in its newsrooms and search for cost reductions “in a judicious manner.”New Media plans to pay cash and shares worth $12.06 a Gannett share, leaving Gannett holders with about 49.5% of the combined company. Gannett investors applauded the long-beleaguered company finding a buyer, sending shares up as much as 5.1%. New Media shareholders, meanwhile, were skeptical that the deal would pay off. Its stock lost as much as 8.6%.The deal comes just months after Gannett fought off a hostile takeover bid by MNG Enterprises Inc., which is backed by the hedge fund Alden Global Capital. It also increases pressure on other local newspaper owners, such as Tribune Publishing Co., Lee Enterprises Inc. and McClatchy Co., to find deals of their own.Downward SpiralThe newspaper industry has been in a downward spiral for years as the internet has upended its business model. Readers have moved online and get their news from social media, eroding print advertising sales. Much of the online ad market, meanwhile, is being gobbled up by Facebook and Google. And many newspapers have eroded their quality by ordering deep cuts to their newsrooms, making it increasingly difficult to persuade readers to pay for online subscriptions.Newspaper executives see few options other than consolidation to cut even more costs, from sharing printing operations to eliminating local copy editors and designers. The number of newspaper newsroom employees dropped by 47% between 2008 and 2018, from about 71,000 workers to 38,000, according to Pew Research Center.The deal further solidifies the power of private equity firms and hedge funds in the newspaper business. New Media is managed and controlled by private equity firm Fortress Investment Group. Alden Global owns about 60 daily newspapers, including the Denver Post, through MNG, also known as Digital First Media. The hedge fund Chatham Asset Management LLC is one of the largest shareholders and bondholders in McClatchy, publisher of the Charlotte Observer and Miami Herald.After emerging from bankruptcy in 2013, New Media has been on a buying spree and now owns almost 150 newspapers in smaller cities like Columbus, Ohio, and Providence, Rhode Island. Like its peers, it has developed a reputation for cutting staff from its newsrooms.‘Unproductive’ ReportersIn an interview with Bloomberg News last year, New Media Chief Executive Officer Michael Reed said the reporters who have been dismissed were highly paid but unproductive. The company is asking the remaining reporters to write more articles. The company has also eliminated local copy editors and designers and moved those jobs to a central hub in Austin, Texas, where it has hired more than 300 people.Reed will retain the positions of chairman and CEO in the new business. Gannett’s newly appointed CEO, Paul Bascobert, will be CEO of the company’s operating subsidiary. Bascobert is a former president of Bloomberg Businessweek, which -- like Bloomberg News -- is a unit of Bloomberg LP.The companies expect the merger to close by the end of the year. New Media and its subsidiary, GateHouse, will operate thereafter under the Gannett brand name.Gannett shares were already up 25% this year before Monday’s rally, fueled by takeover speculation. New Media was down 11%.(Updates with cost savings in third paragraph, shares in fourth paragraph)To contact the reporter on this story: Gerry Smith in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
New Media Investment Group said it plans to acquire rival Gannett Co., with the combined company owning more than 260 daily papers, including five in the Philadelphia region.
Local media company New Media Investment Group said on Monday it will buy USA Today-owner Gannett Co in a $1.4 billion deal, creating the biggest newspaper owner in the United States as publishers struggle with readers shifting to online sources for news. New Media and Gannett are the largest U.S. newspaper owners by circulation, according to Statista. About 25% of the combined company's revenue will come from digital, New Media Chief Executive Officer Michael Reed said on a conference call.
Gannett Co. Inc. and New Media Investment Group Inc. , parent company of GateHouse Media Inc., confirmed Monday that they plan to merge in a blockbuster newspaper coupling. The deal, expected for weeks, will combine the two largest newspaper groups in terms of circulation. Gannett shareholders will receive consideration of $12.06 a share in cash in stock, based on New Media's Friday closing price, with a promise of $6.25 in cash and 0.5427 of a New Media share for each Gannett share. Gannett investors will hold about 49.5% of the company after the transaction and New Media investors will own the rest, according to the announcement. USA Today parent company Gannett named Paul Bascobert as president and CEO, and said that he would run the combined entity's operating subsidiary. New Media CEO Michael Reed will continue to lead the parent company, which the companies hope will find $275 million to $300 million in annualized cost cuts once they are merged. Gannett and New Media shares were halted ahead of the announcement, with Gannett shares trading for $10.68 and New Media stock trading at $10.34. After the official announcement, Gannett shares jumped to more than $11, while New Media shares fell to about $10.20.
(Bloomberg) -- (Updates with deal value, expected term loan size)New Media Investment Group, GateHouse Media’s parent company, agreed to acquire Gannett in a cash-and-stock deal worth $12.06 per share based on New Media’s closing price on Aug. 2., combining the largest and second-largest U.S. newspaper publishers by circulation.The offer of $6.25 in cash and 0.5427 of New Media shares per Gannett shares is worth about $1.38 billion, based on 114.52 million shares outstandingGateHouse Chairman and CEO Mike Reed will assume the same roles at the combined company, which would publish about 265 daily newspapersPaul Bascobert, the newly named CEO of Gannett, will become CEO of the combined company’s operating subsidiaryGannett CFO Alison Engel is expected to be CFO of the combined organizationAfter the deal closes, Gannett holders will own about 49.5% and New Media holders will own about 50.5%New Media plans a five-year senior secured term loan facility worth about $1.79 billion, to be funded with a commitment from Apollo Global ManagementNOTE: Gannett’s closing price was $7.63 on May 29, the day before Gannett and GateHouse were first reported to be holding merger talksNOTE: Earlier this year, Gannett rejected a $12-per-share hostile bid from hedge fund-backed MNG Enterprises, which was subsequently unsuccessful in a proxy fight to name directors to Gannett’s boardNOTE: New Media Investment Group is operated by private-equity firm Fortress Investment, which is owned by Japan’s SoftBankTo contact the reporter on this story: Nick Lichtenberg in New York at email@example.comTo contact the editor responsible for this story: Chakradhar Adusumilli at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
NEW YORK-- -- Total Revenues of $404.4 million Operating income of $12.2 million As Adjusted EBITDA of $47.5 million* Free Cash Flow of $33.6 million* Declared second quarter dividend of $0.38 Today announced the acquisition of Gannett in a concurrent press release. Management will host an investor call about the transaction and earnings at 4:15pm ET. The conference call may be accessed by dialing ...