There are signs of a new round of consolidation in the US newspaper market with Gannett’s acquisition of the Journal Media Group for $280m (£183m).
It adds the Milwaukee Journal Sentinel plus 16 other daily papers and 18 weeklies to the vast Gannett stable, the largest newspaper publisher in the USA.
It is the first major deal negotiated by Gannett since it was spun off in June from its television assets to become a pure newspaper company. It previously assumed control of some papers in Texas, New Mexico and Pennsylvania as part of an asset swap with Digital First Media.
It underlines Gannett’s stated commitment to acquire papers in relatively small markets. Chief executive Robert Dickey described the Journal Media deal as “an excellent first step in the industry consolidation strategy... and is a good example of the value-creating opportunities we believe are available.”
Gannett owns the British chain, Newsquest, which acquired 29 titles when buying the Romanes Media group in May this year for an undisclosed sum.
Sources: USA Today/Wall Street Journal/Poynter
