On Wednesday, New York-based media giant Gannett Co., Inc. announced that it has entered an asset purchase agreement with Hearst.
As part of the agreement, New York-based Hearst will purchase the Austin American-Statesman from Gannett’s USA TODAY Network portfolio.
A media conglomerate that owns multiple newspapers, including the Houston Chronicle, San Antonio Express-News and San Francisco Chronicle, Hearst also owns credit-ratings company Fitch Group and magazines such as Esquire, as well as stakes in television networks such as A&E and ESPN.
“The sale of the Austin American-Statesman from our portfolio is a strategic decision that will complement the Hearst brand while positioning Gannett and the USA TODAY Network of more than 200 local publications for future growth. We are confident Hearst will be a great home for our Statesman colleagues,” Michael Reed, Gannett Chairman and CEO, said in a news release.
The sale includes the Statesman and its local community-focused publications: the Bastrop Advertiser, Lake Travis View, Pflugerville Pflag and the Round Rock Leader, as well as its digital offerings, Austin360 and Hookem.com.
Neither company disclosed the price Hearst paid for the Statesman, which reported 38,132 digital subscribers in 2013, and its community publications. The transaction is expected to close within the first quarter.
Gannett says it will use the proceeds from the sale to reduce its beyond the $110 million already announced in September.
“This acquisition complements Hearst’s set of newspapers and reinforces our commitment to delivering high-quality journalism. It aligns with our strategy to invest in thriving communities with strong potential. We look forward to welcoming the Austin American-Statesman team to Hearst,” Jeff Johnson, president of Hearst Newspapers, said in the release.
The sale comes seven years after New Media Investment Group, the parent company of New York’s GateHouse Media, acquired the Statesman and its affiliate publications from Atlanta’s Cox Media Group, which owned the Statesman for over 40 years, for $47.5 million.
Then, in 2019, GateHouse Media announced it was acquiring Gannett Co., Inc. for $1.4 billion.