Multi-platform news and information company, Gannett Co., Inc. (NYSE:GCI) , has acquired North Jersey Media Group Inc. The buyout includes The Record (Bergen County), the Herald News, as well as their associated digital assets. Following the news, the company’s shares gained 2.5% on Jul 6.
Per the agreement, the Community News Group, the Magazine Group, and the Events Group are also part of the buyout. However, the financial terms of the deal have been kept under wraps.
Gannett, which publishes USA Today and more than 100 other dailies, is expected to be highly benefitted by the aforementioned deal. The company will now be able to generate nearly $90 million in annual revenues with the new addition to its portfolio. This deal will also solidify the company’s presence in New Jersey.
Recently, Gannett entered into a deal to acquire digital marketing solutions company ReachLocal, Inc. The deal, which is expected to conclude in the third quarter of 2016, will help the acquirer boost its digital offerings.This buyout is anticipated to be neutral to earnings per share in the first full year but will be modestly accretive to earnings in its second full year. In fact, the Zacks Rank #1 (Strong Buy) company expects the ReachLocal acquisition to help enhance its digital revenues by approximately 50%, initially.
Gannett, which shares space with The New York Times Company (NYSE:NYT) , also acquired of Journal Media Group, Inc. – the owner of the Milwaukee Journal Sentinel and other newspapers – for approximately $280 million in the recent past. Journal Media Group was formed after Journal Communications and E.W. Scripps merged their broadcasting operations and split the newspaper business. The merged broadcasting and digital media company, headquartered in Cincinnati, retained the name The E.W. Scripps Company (NYSE:SSP) .
A Stock to Consider
A stock from the same space that warrants a look is The McClatchy Company (NYSE:MNI) , which sports a Zacks Rank #1 (Strong Buy).
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