The 19,600 employees of Gannett newspapers coming to work Monday will be working for a new company — untethered from growing and prosperous television stations and digital ventures.
Retaining the Gannett name, the spin off company has well defined plans for digital transformation and for expansion by acquisition. Its reception by Wall Street is less certain, but it is sweetening the case by promising a substantial dividend — 64 cents on shares trading around $15.
Gannett executives telegraphed the acquisition strategy in the company’s most recent earnings call and has since bought 11 titles in Texas and New Mexico, in which it already had a partial stake, from Digital First Media.
More is on the way, the company said in a presentation to investors last Monday. Read more