Mergers in the world of newspapers

Back in the 1990s, people would read newspapers daily. Times have changed, as many people do not read newspapers these days. The Washington Post is owned by Jeff Bezos, the world's richest person. Gannett owns USA Today, and 99 other daily newspapers. But, New Media Group announced plans to acquire Gannett in the past two weeks. This merger would create the nation's largest news company by print and digital audience. Next, the main combination is Gannett and Gatehouse. Gatehouse is owned by New Media Group. Leon Cooperman is a billionaire, and he has increased his stake in New Media Group recently. He is an influential investor in New Media Group, as he owns 9.9% in the company. MNG Enterprises failed in its hostile takeover attempt of Gannett. MNG Enterprises and major stockholders may oppose the merger between New Media Group and Gannett. Furthermore, Gannett is twice as large as New Media in terms of revenue. New Media would own a majority of the company, if the merger is approved. New Media Group's acquisition deal is worth approx. $1.4 billion, with Gannett. The shareholders of Gannett and New Media will vote whether to approve the deal, before the start of the 4th quarter 2019. The merger should close by the end of 2019. There have been continued declines in print advertising, as people read the news on their smartphones; follow news through social media; and read online news. In addition, consolidation would be huge for digital journalism changes for Gannett and New Media. The merger makes senses as overlapping costs would be shed, and the combined company would attract advertisers on a national scale. In the digital journalism transformation, this deal should happen. The combined company will continue with the Gannett name. If the merger is approved, the two companies would operate more than 260 daily news operations and boast the largest online audience of any American news provider. In this penultimate paragraph, the merger could be in limbo. New Media Group's market cap is close to $500 million, while Gannett's market cap is $1.1 billion. New Media Group has corporate headquarters in NY state, while Gannett has main offices in McLean, VA. If the merger is not approved, Gatehouse and Gannett would stay as independent companies. The merger could fail due to industry attractiveness; long-term future; net present value being greater than purchase price; and integration challenges. In closing, digital journalism could transform in many ways if the merger of Gannett and New Media Group is approved. Enjoy the picture of Gannett company headquarters above. The merger will help both companies in the long run, according to many digital journalism critics. Good day everyone.