Two-three years of stories like "PE good, Buffett/Berkshire bad" until, like Sears or Toys R Us they are sucked dry and are declared victims of the depression of 2021.
From PitchBook, Aug 5:
Private equity will soon manage the largest newspaper chain in the US. And that likely means more layoffs for an industry that's struggled to find a viable digital business model.Also at PitchBook:
After months of rumors, GateHouse Media's parent company, New Media Investment Group, has agreed to buy newspaper publisher Gannett in a cash-and-stock deal reportedly worth some $1.4 billion. As part of the agreement, New Media will pay $6.25 per share in cash and 0.5427 New Media shares for every Gannett share, or the equivalent of $12.06 apiece. At closing, Gannett shareholders will own 49.5% of the combined business, with New Media shareholders owning the rest.
New Media is expected to realize between $275 million and $300 million in savings through the first 24 months of ownership. Layoffs will almost certainly create much of those savings for New Media. Over the past the few years, the company has been gobbling up newspapers across the country, then aggressively cutting costs to drive profits for Fortress Investment Group, which manages operations and itself owned by Softbank.
The latest deal will combine GateHouse, which has some 400 papers and a combined circulation above 4.29 million, and Gannett, which has 215 newspapers including USA Today, the Detroit Free Press, The Tennessean and a number of other publications that have an overall circulation of 4.32 million, per The Wall Street Journal....MUCH MORE
Related read: Don't count on private equity to save newspapers
So where the hell am I supposed to get my daily gossip fix?
Facebook and their 'local news'? I think not.
Which means I will no longer be able to pursue my dream of being the suave raconteur dropping tidbits at the Thursday afternoon soirée.
I'll just be dropping crumbs from those stupid little sandwiches.
