GateHouse, Gannett receive approval to merge

GateHouse and Gannett, two of the largest US media companies, have been authorized to merge, according to an internal memo obtained by FOX Business.

The Antitrust Division of the Department of Justice has completed the review of the proposed merger acquisition and, with the waiting period elapsed, the companies have obtained conciliation clearance, as per the memo.

The companies agreed in August to merge a cash and stock deal for approximately $ 1.4 billion, making the new firm the largest newspaper company in the United States. The new company will be renamed and operated under Gannett and retain the current Gannett headquarters in McLean, Virginia.

Gannett expects the transaction to be completed by the end of 2019.

With the purchase of Gannett, owner of USA Today, GateHouse intends to strengthen its digital voice as customers move from screen to screen. The two companies will now have a printed print run of $ 8.7 million, or $ 7 million more than the new number 2, McClatchy, according to media expert Ken Doctor. The companies said they would seek to reduce their costs by $ 300 million each year.

The merger comes at a time when local newspapers continue to weaken. According to a study from the University of North Carolina, nearly 1,800 local newspapers in the United States have ceased publication since 2004, resulting in a loss of jobs in newsrooms from coast to coast to coast. other.

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According to Pew Research data, between 2008 and 2018, newsroom employment fell by a quarter. About 114,000 employees worked in five new-producing industries in 2008. Ten years later, their number dropped to about 86,000, a loss of about 28,000 jobs, with the newspaper industry leading the way . According to Pew, the number of employees in newsrooms has dropped by nearly 50%, from about 71,000 to about 38,000 people between the same period.

Associated Press contributed to this report.