GateHouse Media Article

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GateHouse Media, Inc.
Public
Traded as NYSENEWM
S&P 600 Component
Industry News media
PredecessorLiberty Group Publishing
Founded1997 (1997)
FounderKenneth L. Serota
Headquarters Perinton, New York [a]
Area served
United States
Key people
Kirk Davis, CEO

Paul Ameden, CIO Bill Church, Senior VP News

Polly Grunfeld Sack, SVP / General Counsel [2]
Products130 daily newspapers
640 community publications
540 local market websites
Website gatehousemedia.com

GateHouse Media Inc. (formerly Liberty Group Publishing), a holding company for New Media Investment Group (NYSE: NEWM), former symbol on OTC Markets Group's OTCQB tier GHSE, is one of the largest publishers of locally based print and digital media in the United States, headquartered in the town of Perinton, New York. [1] As of April 2018, GateHouse Media publishes 144 daily newspapers, 684 community publications, and over 569 local-market websites in 38 states. In addition to publishing content, GateHouse Media offers commercial services including a digital marketing agency (ThriveHive), event production company (GateHouse Live), and creative services (Creative Solutions). [3]

History

Liberty Group Publishing

Liberty Group Publishing was formed in 1998 when Kenneth L. Serota, a former Hollinger International attorney with backing from Leonard Green & Partners bought 160 community newspapers from Hollinger. [4]

Headquartered in Downers Grove, Illinois, Liberty then expanded the network increasing the total newspapers to 330 by 2000. Faced with problems, it downsized to 270 by June 2005.[ citation needed]

Gatehouse Media

In June 2005, Fortress Investment Group bought Liberty for $527 million. Fortress expanded it to 75 dailies, 231 weeklies, 117 shoppers, and 230 websites. [5] It was renamed GateHouse and its headquarters moved to suburban Rochester, New York, in April 2006.[ citation needed]

By 2013, GateHouse Media grew, operating in 330 markets across 21 states, but they found themselves in a debt situation that would prohibit future growth. [6] The company filed for Chapter 11 bankruptcy on September 27, 2013. It re-emerged from the planned bankruptcy in November 2013. In the restructured plan, Gatehouse stock was cancelled and a new holding company for the parent, New Media Investment Group, Inc., was formed ( NYSE: NEWM). [7]

Gatehouse Media re-emerged ready to grow their portfolio, acquiring several newspaper groups between 2014 and 2017, including Halifax, [8] Stephens Media, [9] Calkins Media and Morris Publications. [10] They also acquired Dolan Media Group [11] and Journal Multimedia, [12] adding business publications to their portfolio. The combined group of business publications was rebranded as BridgeTower Media.

The GateHouse Media corporate strategy continues to focus on acquiring and operating traditional local media businesses and transforming them from print-centric operations to multimedia operations. [13] As of April 2018, GateHouse Media publishes 144 daily newspapers, 684 community publications, and over 569 local market websites in 38 states.

IPO

In October 2006, GateHouse had its IPO with Fortress maintaining 60% ownership. [14] Its stock dropped from $20 on initial trading in 2006 to 16 cents when it was delisted in October 2008.

On October 23, 2007, GateHouse announced the purchase of 14 daily newspapers and other publications from Morris Communications. [15] On August 28, 2008, GateHouse sold two of those papers, The Grand Island Independent and the York News-Times, both in Nebraska, to the Omaha World-Herald Co. [16] The company received notification from the NYSE on August 21, 2008, that it had fallen below the NYSE's continued listing standards for average global market capitalization over a consecutive 30-trading-day period of not less than $75 million and $1.00 average closing price, and had submitted a business plan to the NYSE Regulation for coming back into compliance for continued listing. The company has been in communication with the NYSE regarding its noncompliance with continued listing standards, but was unsuccessful in its efforts to avoid suspension and delisting.

Bankruptcy, Bailout and Restructuring

On September 4, 2013, News Corp announced that it would sell the Dow Jones Local Media Group, a group of 33 local newspapers, to Newcastle Investment Corp, an affiliate of Fortress, for $87 million. The newspapers were operated by GateHouse Media following the purchase. CEO Robert James Thomson indicated that the newspapers "were not strategically consistent with the emerging portfolio" of the company, which had been formed as a spin-off of News Corporation. [17]

On September 27, 2013, the company filed Chapter 11 bankruptcy in U.S. Bankruptcy Court in Wilmington, Delaware. It listed assets of $433.7 million and debt of $1.3 billion. The planned bankruptcy centered on restructuring the Fortress News Corp deal. Fortress owns 52% of GateHouse debt. A Fortress unit FIF III Liberty Acquisitions LLC merged with Gatehouse in 2005.

The company emerged from bankruptcy on November 26, 2013. The terms involved the cancellation of shares of Gatehouse, but those owners receiving warrants to buy shares in New Media Investment Group Inc, a new holding company. [18]

Recent acquisitions

In January 2015, GateHouse purchased the 36 newspapers of the Halifax Media Group for $280 million. [19] In February 2015, GateHouse purchased Stephens Media, which published newspapers mainly in Arkansas and Nevada, for $102.8 million. [20] In December 2015, GateHouse sold the Las Vegas Review-Journal, the Stephens group's largest paper, to casino magnate Sheldon Adelson for $140 million. [21]

In November 2016, GateHouse announced the purchase of Harris Enterprises, based in Hutchinson, Kan., which operated six daily newspapers in Kansas and Iowa. [22] In February 2017, GateHouse purchased the Dix Communications newspaper chain for $21.2 million. Dix Communications operates in northeastern and east-central Ohio, including more than 30 daily and weekly newspapers. [23] In June 2017, GateHouse announced it was purchasing Calkins Media Group's four six-day-a-week newspapers and Calkins Digital Group, a press facility and related websites and other digital operations. [24]

In August 2017, GateHouse announced it was purchasing 11 daily newspapers, 30 weeklies, and other assets from Morris Publishing Group, a division of Morris Communications. [25]

In January 2018, GateHouse announced its purchase of Oregon's second-largest daily newspaper, The Register-Guard. [26]

In February 2018, GateHouse announced the acquisition of Kirk Davis' independently owned Holden Landmark Corporation for an undisclosed sum. The sale includes the central Massachusetts media properties, Worcester Magazine, The Landmark, baystateparent Magazine, Leominster Champion, Millbury-Sutton Chronicle, and the Grafton News. [27]

In March 2018, GateHouse announced its $47.5 million purchase of the Austin American-Statesman of Austin, Texas. It is the largest newspaper in Central Texas. In the same month, GateHouse announced its $49.25 million purchase of The Palm Beach Post and Palm Beach Daily News from Cox Media Group, LLC. [28]

On April 10, 2018, GateHouse announced that it had agreed to acquire the Akron Beacon Journal of Akron, Ohio for $16 million from Black Press Group [29]. The Beacon Journal is a daily newspaper tracing its storied, Pulitzer Prize-winning history to 1839's Summit Beacon, which early in the 20th century came under the editorship and ownership of publisher John S. Knight, serving as the flagship newspaper of the Knight Newspaper Company, later known as Knight Ridder. [30]

On July 2, 2018, GateHouse acquired SouthernKitchen.com, the Atlanta-based Southern food and lifestyle brand. Southern Kitchen, launched by Cox Media Group (CMG) in 2017, is a blend of e-commerce and content. It delivers content and products related to eating, drinking, and entertaining with a Southern flair.

On Sept. 27, 2018, GateHouse Media announced the acquisition of The Oklahoman Media Company, parent company of The Oklahoman, which is the state's largest daily newspaper, for an undisclosed amount from The Anschutz Corp. The sale is expected to close Oct. 1, 2018, according to a story on NewsOK.com, the newspaper's website. [31]

Holdings

Notes

  1. ^ While its mail is delivered from the Pittsford, NY 14534 post office, GateHouse's headquarters lie about a third of a mile east of the eastern border of Pittsford, New York. [1]

References

  1. ^ a b "Town of Perinton Street Map" (PDF). http://www.perinton.org. Perinton, New York: Town of Perinton. 2007-12-17. Grid coordinates 7B. Archived from the original (PDF) on 2011-04-25. External link in |website= ( help)
  2. ^ "GateHouse Media Website". GateHouseMedia.com. Retrieved 18 January 2018.
  3. ^ "GateHouse Media Corporate Website".
  4. ^ Culloton, Dan; 509 words. "Red ink pressing publisher; Liberty Group grew fast, but so did its debt — Crains — August 5, 2004". Highbeam.com. Retrieved 2012-05-06.
  5. ^ U.S. "International Directory of Company Histories. Copyright © 2006 by The Gale Group, Inc". Answers.com. Retrieved 2012-05-06.
  6. ^ "GateHouse Media Files for Pre-packaged Chapter 11".
  7. ^ "GateHouse Media Files Chapter 11 to Form New Company".
  8. ^ "Daytona News-Journal Announcement".
  9. ^ News & Tech. "New Media Closes on Stephens Media Buy".
  10. ^ AdWeek. "GateHouse Media to Buy Morris Communications".
  11. ^ Law Sites (Blog). "Dolan Acquired by GateHouse Media".
  12. ^ The Morning Call. "New Media Buys LeHigh Valley Business".
  13. ^ "New Media Investment Website".
  14. ^ GateHouse Media stock being delisted from NYSE - October 22, 2008 Archived October 28, 2008, at the Wayback Machine.
  15. ^ "GateHouse Buying 14 Dailies, Other Pubs, From Morris For $115 Million". Editor & Publisher. October 23, 2007. Retrieved February 19, 2016.
  16. ^ [1]
  17. ^ "News Corp. sells 33 papers to New York investors". New York Business Journal. Retrieved 4 September 2013.
  18. ^ Staff reports (26 November 2013). "GateHouse Media officially done with bankruptcy". Rochester Democrat and Chronicle. Retrieved 4 March 2015.
  19. ^ "GateHouse acquires News-Journal, Halifax Media". The Daytona Beach News-Journal. 9 January 2015. Retrieved 26 November 2017.
  20. ^ "Review-Journal, parent Stephens Media to be sold to New Media". Las Vegas Review-Journal. 19 February 2015. Retrieved 26 November 2017.
  21. ^ "Sheldon Adelson's Purchase of Las Vegas Paper Seen as a Power Play". The New York Times. 2 January 2016. Retrieved 26 November 2017.
  22. ^ "GateHouse to acquire Kansas-based Harris newspapers". Topeka Capital-Journal. 14 November 2016. Retrieved 26 November 2017.
  23. ^ "Fox Business - GateHouse Media Buys Dix Communications Newspaper Chain".
  24. ^ "Business Wire - New Media Announces Agreement to Acquire Calkins Media".
  25. ^ "GateHouse acquires Morris Publishing's 11 daily newspapers". Poynter.org. 9 August 2017. Retrieved 26 November 2017.
  26. ^ "The Register-Guard sold to GateHouse Media". The Register-Guard. January 26, 2018.
  27. ^ Harris, David L. (2018-02-22). "GateHouse Media grows its empire by buying top exec's publishing company". Boston Business Journal. Retrieved 2018-02-23.
  28. ^ "New Media Investment Group to Acquire The Palm Beach Post and Palm Beach Daily News".
  29. ^ Conn, Jennifer. "Gatehouse Media purchases Akron Beacon Journal". Cleveland.com. Retrieved 18 May 2018.
  30. ^ "GateHouse Media Buys Akron Beacon Journal and Ohio.com" https://www.ohio.com/akron/alert/gatehouse-media-buys-akron-beacon-journal-ohio-com Retrieved 4-10-2018
  31. ^ https://www.oklahoman.com/article/5609812?access=ce6d1f93bc8d5a6507c78ce902a33b5d

External links