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Gannett, Gatehouse talking merger

Discussion in 'Journalism topics only' started by SoloFlyer, May 30, 2019.

  1. Readallover

    Readallover Active Member

    Ms. Gracia Martore was smart to split Old Gannett’s broadcast and print units into separate companies. It took four years and the Tegna shareholders are about to cash in. I’d like Byron to be the new owner as he’s built his company from the ground up and we need more inclusive ownership of our media companies.
    Last edited: Mar 12, 2020
  2. Readallover

    Readallover Active Member

    GCI sinks to new 52-week low today. Closed businesses don’t advertise. New Gannett is finished. Only question is whether it will be a liquidation or reorganization bankruptcy.
  3. Marvin

    Marvin Active Member

    Closed at $2.60
  4. LanceyHoward

    LanceyHoward Well-Known Member

    The financing was provided by a private equity firm, Apollo Global Management. So they would take over the company, just as Chatham has taken over McClatchy.

    It has been speculated that Apollo's strategy was to make the 1.7 billion dollar loan at 11.5% interest because it was a cheap way to take over Gannett.

    If Gannett declares Chapter 11 Apollo gets the company and the stockholders get zero. A cheap way to buy the company. And if somehow the company avoids Chapter 11 then Apollo gets a 11.5% return on its loan.

    I don't think Apollo would have done the deal if they were planning to liquidate the collateral.
  5. Equalizer

    Equalizer Member

    I figure there's some Gannett exec looking at no sports to cover, and thinking those positions would be the good ones to cut soon.
  6. sgreenwell

    sgreenwell Well-Known Member

    If Ragu is correct, and I don't have a reason to doubt him on this, the end was coming soon anyway for the chain, and all of the ramifications of the virus are probably going to hasten things. Like to me, the only "question" is the order of operations here - Will Gannett-GH get the "chance" to cut a bunch of jobs and sports departments en masse before they have to declare bankruptcy? The chain's continued existence seemed built on the idea of a ridiculous reversal of revenue projections for no real reason, and for at least one month and maybe as many as five or six, it's hard to imagine that they'll be getting anything close to regular advertising rates.
    cake in the rain likes this.
  7. LanceyHoward

    LanceyHoward Well-Known Member

    I am not Ragu but I will offer an opinion. This is copied from the Gannett investor relations:

    "Gannett is externally managed and advised by an affiliate of Fortress Investment Group LLC, a global investment management firm. This management agreement will be sunset at the end of 2021 as a condition of the Merger."

    Fortress takes out close to $20 million dollars a year in management fees plus another couple million dollars in reimbursements for expenses. Plus an incentive bonus that could net as much as eight figure.

    Fortress is not going to walk away from that so they will work like hell to keep the company open until the end of 2021.

    In 2022 I see a trip to Chapter 11.
    Last edited: Mar 17, 2020
  8. rtse11

    rtse11 Well-Known Member

    In my little neck of the woods there are 6 GannettHouse pubs within a 100-mile drive; I have to believe there will be a major restructuring within 6 months.
    Readallover likes this.
  9. Readallover

    Readallover Active Member

    I agree. NJ is overdue for a restructuring.
  10. FileNotFound

    FileNotFound Well-Known Member

    GCI stock below $2. $1.86 as of 10:44 am.
  11. DanOregon

    DanOregon Well-Known Member

    Free shares of stock with each digital subscription (first three months) or the other way around?
    HanSenSE likes this.
  12. LanceyHoward

    LanceyHoward Well-Known Member

    I take it they already are printed in a central plant. IF not that will soon be consolidated. Gannett has started printing Columbus Ohio in Indianapolis. According to my Google maps the distance is about 175 miles between the cities. So consolidating plants 100 miles apart will happen.
    Last edited: Mar 19, 2020
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