For-profit

New Media Investment Group

Headquarters:

New York, New York

Type:

For-Profit

Formation:

2013

Executive Director:

Michael E. Reed

New Media Investment Group is a New York City-based private equity firm that is the parent company of Gannett Co., Inc., the largest newspaper publisher in the United States. [1]

Formed in 2013 to restructure GateHouse Media’s $1.2 billion of debt chapter 11 bankruptcy, New Media Investment Group operated GateHouse Media as the then-largest newspaper publisher in terms of distinct publications. [2] In 2019, New Media Investment Group acquired rival publisher Gannett and merged the company with GateHouse to become the largest newspaper publisher in the United States. [3]

New Media Investment Group oversees the operations and publishing of 260 daily newspapers and 300 weekly publications in 47 states and Guam [4] and administers over 130,000 business advertising accounts with a weekly reach of over 12 million people. [5]

Michael E. Reed is the president and CEO of New Media Investment Group. [6] [7] Reed has faced criticisms in the past from the NewsGuild, an affiliate of the left-wing Communications Workers of America labor union, for purchasing newspapers, consolidating editorial practices, and reducing jobs to increase profits. [8]

History and Leadership

New Media Investment Group is a private equity firm which focuses on investing in local media assets, advertising, and digital marketing businesses. [9] [10] The firm was formed in 2013 to restructure $1.2 billion of debt and restructure newspaper publisher GateHouse Media following Chapter 11 bankruptcy. [11] [12] As GateHouse’s parent company, New Media operated as many as 144 daily newspapers, 684 community publications, and 569 local market websites in 38 states. [13]

In 2019, New Media Investment Group purchased newspaper publisher Gannett, the owner of USA Today and more than 100 other publications, for $1.4 billion. [14] In November of 2019, New Media merged GateHouse and Gannett into a newly constituted Gannett, [15] creating the largest U.S. media company by print circulation and one of the nation’s largest online news and information audiences. [16] [17] Following the merger, Gannett publishes 260 daily newspapers and 300 weekly publications in 47 states and Guam [18] and administers over 130,000 business advertising accounts with a weekly reach of over 12 million people. [19]

Michael E. Reed is the president and CEO of New Media Investment Group. [20] [21] Reed was GateHouse CEO prior to the company’s acquisition by New Media Investment Group. [22] He assumed the New Media Investment Group CEO role in 2019 after the company merged of New Media and Gannett. [23] Reed has faced criticisms in the past from the NewsGuild, an affiliate of the left-wing Communications Workers of America labor union, for purchasing newspapers, consolidating editorializing responsibilities, and cutting jobs to increase profits. [24]

Activities

Since its founding, New Media Investment Group has purchased, merged, reorganized, and reconstituted hundreds of newspapers in large and small markets across the United States. These mergers have resulted in industrywide layoffs and caused the printing of what critics have called “ghost papers,” so named for being diminished versions of once larger papers that are published by “bare-bones” staff. [25]

Corporate Structure

New Media Investment Group is managed by New York-based firm Fortress Investment Group through an affiliate. Fortress is owned by SoftBank, a Japanese conglomerate. [26]

References

  1. [1] Bomey, Nathan. “CEOs of new Gannett: ‘Pivot’ needed for digital transformation as merger is completed.” USA Today Money. November 11, 2019. Accessed January 1, 2022. https://eu.usatoday.com/story/money/2019/11/19/gannett-new-media-investment-group-merger-gatehouse-media/4203820002/. ^
  2. “New Media Investment Group.” Forbes. Accessed January 1, 2021. https://www.forbes.com/companies/new-media-investment-group/. ^
  3. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  4. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  5. “New Media Investment Group.” Crunchbase. Accessed January 1, 2022. https://www.crunchbase.com/organization/new-media-investment-group. ^
  6. Reuters Staff. “New Media to buy Gannett for $1.4 billion, creating biggest U.S. newspaper publisher.” Reuters. August 5, 2019. Accessed December 31, 2021. https://www.reuters.com/article/us-gannett-co-m-a-new-media-investment-g/new-media-to-buy-gannett-for-1-4-billion-creating-biggest-u-s-newspaper-publisher-idUSKCN1UV21L. ^
  7. “New Media Investment Group.” Cruchnbase. Accessed January 1, 2022. https://www.crunchbase.com/organization/new-media-investment-group/people. ^
  8.  Ratcliffe, R.G. “New Media Buys the “Austin American-Statesman.” March 6, 2018. Accessed January 1, 2022. https://www.texasmonthly.com/news-politics/new-mediagatehouse-buys-the-statesman/. ^
  9. Doctor, Ken. “Newsonomics: GateHouse Media thinks services for local businesses can replace long-gone advertising.” NiemanLab. June 20, 2018. Accessed January 1, 2021. https://www.niemanlab.org/2018/06/newsonomics-gatehouse-media-thinks-services-for-small-local-businesses-can-help-replace-long-gone-advertising/. ^
  10. “New Media Investment Group.” Crunchbase. Accessed January 1, 2022. https://www.crunchbase.com/organization/new-media-investment-group. ^
  11. “New Media Investment Group.” Forbes. Accessed January 1, 2021. https://www.forbes.com/companies/new-media-investment-group/. ^
  12. Doctor, Ken. “Newsonomics: GateHouse’s Mike Reed talks about rolling up America’s news industry.” June 20, 2018. Accessed June 20, 2022. https://www.niemanlab.org/2018/06/newsonomics-gatehouses-mike-reed-talks-about-rolling-up-americas-news-industry/. ^
  13. Gaston Gazette Staff. “Gazette’s Poteat wins national award.” Gaston Gazette. June 12, 2018. Accessed January 1, 2021. https://eu.gastongazette.com/story/news/2018/06/12/gazettes-poteat-wins-national-award/11991528007/. ^
  14. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  15. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  16. Bomey, Nathan. “CEOs of new Gannett: ‘Pivot’ needed for digital transformation as merger is completed.” USA Today Money. November 11, 2019. Accessed January 1, 2022. https://eu.usatoday.com/story/money/2019/11/19/gannett-new-media-investment-group-merger-gatehouse-media/4203820002/. ^
  17. Reutrers Staff. “New Media to buy Gannett for $1.4billion, creating biggest U.S. newspaper publisher.” Reuters Augut 5, 2019. Accessed January 1, 2022. https://www.reuters.com/article/us-gannett-co-m-a-new-media-investment-g/new-media-to-buy-gannett-for-1-4-billion-creating-biggest-u-s-newspaper-publisher-idUSKCN1UV21L. ^
  18. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  19.  “New Media Investment Group.” Crunchbase. Accessed January 1, 2022. https://www.crunchbase.com/organization/new-media-investment-group. ^
  20. Reuters Staff. “New Media to buy Gannett for $1.4 billion, creating biggest U.S. newspaper publisher.” Reuters. August 5, 2019. Accessed December 31, 2021. https://www.reuters.com/article/us-gannett-co-m-a-new-media-investment-g/new-media-to-buy-gannett-for-1-4-billion-creating-biggest-u-s-newspaper-publisher-idUSKCN1UV21L. ^
  21. “New Media Investment Group.” Cruchnbase. Accessed January 1, 2022. https://www.crunchbase.com/organization/new-media-investment-group/people. ^
  22. “New Media and Gannett Announce the Board of Directors for the Combined Company.” Business Wire. October 29, 2019. Accessed January 1, 2020. https://www.businesswire.com/news/home/20191029006108/en/New-Media-and-Gannett-Announce-the-Board-of-Directors-for-the-Combined-Company. ^
  23. Bomey, Nathan. “New Gannett appoints key executives after New Media Investment Group merger.” USA Today. Accessed December 31, 2021. https://eu.usatoday.com/story/money/2019/11/20/gannett-new-media-investment-group-merger-key-executives-appointed/4246906002/#:~:text=Gannett%20on%20Wednesday%20named%20a,the%20merger%20was%20finalized%20Tuesday. ^
  24. Ratcliffe, R.G. “New Media Buys the “Austin American-Statesman.” March 6, 2018. Accessed January 1, 2022. https://www.texasmonthly.com/news-politics/new-mediagatehouse-buys-the-statesman/. ^
  25.  [1] Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
  26. Tracy, Marc. “Gannett, the Owner of USA Today, Is About to Get a Whole Lot Bigger.” New York Times. August 5, 2019. Accessed Via Web Archive January 1, 2022. https://www.nytimes.com/2019/08/05/business/media/gannett-acquired-gatehouse-media.html. ^
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