Merger talks in the American newspaper world
The two largest US newspaper publishers may stick together. The Wall Street Journal reports based on insiders that Gannett, known from the USA Today newspaper, has recently had merger talks with GateHouse Media, owner of more than a hundred local newspapers.
The newspaper giants are struggling with declining advertising revenues and competition from digital newcomers. That is why the American newspaper world is increasingly looking at opportunities for collaboration. For example, Gannett would have already discussed possible deals with industry counterparts Tribune Publishing and McClatchy.
Such conversations certainly do not always lead to an actual merger or acquisition. Earlier this year, Gannett rejected another hostile takeover bid from rival MNG. The owner of titles such as Denver Post and Boston Herald had $ 1.4 billion left for Gannett, but Gannett did not consider MNG a credible buyer. The amount offered would also have been too low.