Home »Business and Economy » World » Hedge-fund backed firm offers to buy USA Today publisher Gannett
A hedge-fund backed US media firm on Monday offered to buy Gannett Co, the publisher of the top-selling newspaper USA Today. The $1.4 billion offer by newspaper chain MNG Enterprises is the latest sign of consolidation in the print media industry, which has suffered declining profits and waves of layoffs for well over a decade as print readership declines.

MNG, better known as Digital First Media, owns numerous newspapers nationwide and has a reputation for deep cost cutting at the papers it acquires. It offered $12 a share in cash for Gannett, a 23 percent bump over the closing price on Friday.

In a letter to Gannett's board of directors on Monday, MNG Chairman R. Joseph Fuchs said Gannett had rebuffed his company's prior offers for a "strategic combination" and asserted that company leadership was incompetent. "Frankly, the team leading Gannett has not demonstrated that it's capable of effectively running this enterprise as a public company," Fuchs wrote. "Gannett shareholders cannot sit by and watch further value erode while the board casts about for a strategy and a leader, especially when there is an opportunity to maximize value right now."

Copyright Agence France-Presse, 2019


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