New Media Investment Group announced Monday that it had entered into a merger agreement with newspaper company Gannett Co. Inc.
New Media says the merger will create a media company that includes USA Today and 263 local media organizations, including the Great Falls Tribune, across 47 states and the US territory of Guam. The company estimates they will reach 145 million unique visitors each month.
After the close of the merger, New Media says it and its subsidiary GateHouse will be rebranded as Gannett. Gannett’s current Chief Executive Officer, Paul Bascobert, will be CEO of the subsidiary.
New Media’s current Chairman and CEO, Michael Reed will lead the company’s management team. Gannett Chief Financial Officer Alison Engel is expected to stay on as the combined company’s CFO.
According to a release from New Media, Gannett shareholder will receive a combination of cash and stock in the deal. The combined value of cash and stock works out to about $12.06 for each share of Gannett stock.
At the close of the deal, New Media shareholders will control about 50.5 percent of the combined company.
The merger was unanimously approved by the Boards of both companies and the deal is expected to close by the end of this year.