New Media Investment Group announced Monday that it would purchase Gannett — the owner of the Louisville Courier Journal — which it plans to merge with another media organization to collectively operate over 260 daily news operations.
According to the Gannett-owned USA Today, New Media Investment Groups agreed to buy Gannett for $1.38 billion and will merge it with GateHouse Media, which already owns over 100 daily publications and digital marketing services.
The merger deal is “aimed at cutting overlapping costs and enabling the combined company to pursue a digital transformation,” according to the USA Today report.
“We believe this transaction will create value for our shareholders, greater opportunities for our employees, and a stronger future for journalism,” said New Media Investment Group CEO Michael Reed in a statement on the acquisition and merger.
An editor for the Courier Journal told Insider Louisville that there should be no concern about any immediate job cuts at the 150-year-old newspaper, as the publication will remain committed to its focus on investigative journalism and expand that work in the future.
According to USA Today, Gannett had nearly 17,000 employees and $2.92 billion of revenue in 2018, while GateHouse had over 10,000 employees and $1.53 billion in revenue last year.
The merged company will be called Gannett, with its 260 daily news organizations making it the country’s largest news publisher.