Journal Media Group to merge with Gannett Co., Inc.

Gannett Co. Inc. said Wednesday it plans to buy Journal Media Group, parent company of the Milwaukee Journal Sentinel, Knoxville News Sentinel, Corpus Christi Caller-Times and newspapers in 12 other markets, for about $280 million in cash. The deal is expected to close in the first quarter of 2016 if it receives regulatory and shareholder approval.

"This transaction marks a critical next step in the transformation of our industry as we build local media brands that matter at a time when operational scale is a competitive advantage," said Tim Stautberg, Journal Media Group's president and chief executive officer.

"Both Journal Media Group and Gannett are guided by a vision of strengthening lives and communities, and we'll be better stewards in our local markets by sharing ideas, content and best practices among our new and larger family," Stautberg said.

The agreement heralds an era of further consolidation in the U.S. newspaper industry, as newly pure-play newspaper companies take steps to meet the competitive threat of scaled digital news and advertising businesses.

Read more: http://www.caller.com/news/journal-media-group-to-merge-with-gannett-co-inc-21855930-2429-5bc1-e053-0100007f6c67-331167741.html