Gannett

Gannett Co., Inc.

Company type	Public
Industry	Mass media
Founded	January 1, 1923 (1923-01-01) in Rochester, New York, United States
Founder	Frank Gannett
Headquarters	New York City , United States
Area served	United States
Key people	Mike Reed (CEO)
Products	Newspapers, Publishing
Website	www.gannett.com

Gannett Co., Inc. () is a prominent American mass media holding company based in New York City. It holds the distinction of being the largest newspaper publisher in the United States by total daily circulation.

Among Gannett’s portfolio is the national publication USA Today, along with numerous regional newspapers such as the Detroit Free Press, The Indianapolis Star, The Cincinnati Enquirer, The Columbus Dispatch, Jacksonville’s The Florida Times-Union, Nashville’s The Tennessean, Louisville’s The Courier-Journal, and additional titles serving key metropolitan areas.

In 2015, Gannett underwent a corporate split, resulting in two publicly traded entities: one retained the Gannett name and concentrated on newspapers and publishing, while the other, named Tegna Inc., focused on broadcasting and controlled approximately 68 television stations. Legally, Tegna was recognized as the successor of the original Gannett company, with the new Gannett spun off as a separate entity.

The merger of New Media Investment Group and its subsidiary GateHouse Media into Gannett occurred in November 2019, forming the largest newspaper publisher in the U.S. under the Gannett brand. Mike Reed was appointed CEO to oversee this enlarged company, emphasizing operational efficiency and digital expansion.

1906–1983

Established in 1923 by Frank Gannett in Rochester, New York, Gannett Company, Inc. originated from the Elmira Gazette, a newspaper Frank Gannett launched in 1906. His business approach centered on acquiring small independent newspapers and developing them into an extensive chain, a strategy that supported financial stability within the newspaper industry throughout much of the 20th century.

In April 1957, Paul Miller took over as president and CEO from Frank Gannett when the company managed 19 newspapers across four states. After several unsuccessful efforts to expand into Florida, Miller concentrated on Brevard County. Despite initial opposition from Marie Holderman, proprietor of the Cocoa Tribune, persistent negotiations culminated in acquiring her paper in 1965 for $1.9 million, marking Gannett’s deliberate entry into Florida’s market.

Al Neuharth, recruited by Miller in 1963 to oversee the Democrat and Chronicle, was instrumental in this growth. By 1966, Neuharth led Gannett Florida, purchasing the Star Advocate for $1 million and launching Today in Cocoa, which later became Florida Today. Paid subscriptions surpassed 33,000 by mid-1966, exceeding expectations and reaching profitability by 1968. Neuharth succeeded Miller as CEO in 1973.

A major expansion occurred in 1978 with the $370 million acquisition of Combined Communications Corp., which brought significant assets including newspapers like the Oakland Tribune and The Cincinnati Enquirer, as well as seven television stations, thirteen radio stations, and an outdoor advertising division. This deal substantially broadened Gannett’s media holdings and market presence.

Additional acquisitions included purchasing Wilmington’s The News Journal from DuPont and Nashville’s The Tennessean in 1979, increasing the chain to 79 newspapers. In broadcasting ventures, Gannett collaborated with Telepictures Corporation in 1982 to introduce the Newscope program.

The oldest publication within Gannett’s portfolio is England’s Berrow's Worcester Journal (established 1690), while its longest-running U.S. newspapers are the Poughkeepsie Journal (founded 1785) and The Leaf-Chronicle (established 1808).

1984–2013

In 1984, John Curley took on the role of president and COO, and by 1985 he had advanced to CEO and president. The company shifted its headquarters from Rochester to Arlington County, Virginia in 1986; notably, the previous headquarters, the Gannett Building, was added to the National Register of Historic Places in 1985.

Douglas H. McCorkindale replaced Curley as CEO in 2000 and assumed the chairman position in 2001, coinciding with a relocation of headquarters to Tysons Corner, Virginia, near Washington, D.C. In 2005, Gannett introduced the mojo (mobile multimedia journalist) initiative at Fort Myers' News-Press, empowering reporters to create hyperlocal stories across various media formats—a practice that was subsequently adopted throughout the company.

Executive pay saw a notable rise in 2010; for instance, Bob Dickey, who led Gannett's U.S. newspapers division, earned $3.4 million, up from $1.9 million the year prior. Despite this, in 2011 the company implemented cost-cutting measures that included laying off 700 employees in the United States.

On March 7, 2011, Gannett unveiled a refreshed corporate identity featuring a new logo and the slogan "It's all within reach." The following year, in February 2012, paywalls were introduced on all daily newspaper websites except for USA Today, restricting non-subscribers to accessing between five and fifteen articles per month.

In March 2012, Gannett took disciplinary action against 25 employees in Wisconsin who had signed a political petition, citing concerns related to journalistic ethics.

Gannett expanded its digital advertising portfolio on August 21, 2012, through the acquisition of Blinq Media.

During October 2012, Gannett entered into a carriage dispute with Dish Network over retransmission fees and Dish’s AutoHop feature that allowed commercial skipping. Although there was a threat to remove Gannett’s stations from Dish’s lineup, an agreement was eventually reached following extensions of negotiation deadlines.

Acquisition of Belo Corporation, 2013

On June 13, 2013, Gannett announced its intention to purchase Dallas-based Belo Corporation for $1.5 billion plus debt assumption. This transaction added twenty stations to Gannett’s portfolio, elevating it to the position of the fourth largest television broadcaster in the United States with a total of 43 stations. To address regulatory restrictions concerning ownership conflicts in markets where both companies operated stations and newspapers, Gannett employed Sander Media, LLC—a third-party licensee owned by former Belo executive Jack Sander—to hold certain station licenses. Nevertheless, concerns were raised by anti-consolidation advocates and pay-TV providers about potential market dominance and retransmission consent negotiations, prompting calls for FCC intervention to block the merger.

On December 16, 2013, the U.S. Department of Justice mandated that Gannett, Belo, and Sander divest Belo’s St. Louis station KMOV to an approved third party prohibited from entering agreements with Gannett. This measure aimed to maintain competition against Gannett-owned KSDK. The FCC granted approval for the transaction on December 20, and it was finalized on December 23. Meredith Corporation assumed full operational control of KMOV on February 28, 2014.

Acquisition of London Broadcasting Company stations, 2014

On May 14, 2014, Gannett revealed plans to acquire six Texas-based stations from London Broadcasting Company for $215 million. The acquisition included NBC's KCEN-TV serving Waco-Temple-Bryan; CBS's KYTX covering Tyler-Longview; ABC's KIII in Corpus Christi; ABC/NBC's KBMT located in Beaumont-Port Arthur; as well as FOX affiliates KXVA in Abilene-Sweetwater and KIDY in San Angelo. Chief Operating Officer Phil Hurley joined Gannett to oversee these stations after the acquisition closed on July 8, 2014. This deal expanded Gannett’s reach to encompass approximately 83% of Texas households and marked its initial full ownership of Fox affiliates KIDY and KXVA.

Division and Subsequent Transactions, 2014–2018

On August 5, 2014, Gannett revealed its intention to separate into two publicly traded entities: one concentrating on newspapers and publishing with Robert Dickey as CEO, and the other focusing on broadcasting and digital ventures under CEO Gracia Martore. This restructuring sought to increase shareholder value by refining management focus and expanding operational scale. Simultaneously, Gannett completed the acquisition of full ownership of Classified Ventures—including Cars.com—for $1.8 billion.

By April 2015, the publishing segment retained the Gannett name, while the broadcasting and digital division rebranded as Tegna Inc., with the split finalized by June 29. Tegna preserved the original stock price history under the ticker TGNA; meanwhile, the new Gannett adopted the ticker GCI. Both companies shared headquarters briefly in Tysons Corner, Virginia; Tegna subsequently moved to a nearby new office building.

On October 7, 2015, Gannett broadened its publishing reach by acquiring Journal Media Group for $280 million, gaining control over publications spanning more than 100 markets in the Midwest and South. This followed Journal’s earlier divestiture of its broadcasting assets to E.W. Scripps Company. In December 2015, Gannett consolidated its local newspapers under the "USA Today Network" brand to reinforce market presence.

In April 2016, Gannett submitted an unsolicited offer to purchase Tribune Publishing at $12.25 per share (approximately $400 million), which was declined. The bid was later increased to nearly $15 per share (around $800 million); however, after disappointing financial results in Q2 and Q3 of 2016, Gannett withdrew from acquisition negotiations by November.

Approaching the 2018 U.S. midterm elections, Gannett announced it would cease delaying print deadlines for election outcomes, directing audiences instead toward digital platforms—reflecting a strategic pivot favoring digital engagement over traditional print.

Acquisition by GateHouse Media and SoftBank Connection, 2019

In January 2019, Digital First Media (DFM) launched an unsolicited $1.36 billion offer to acquire Gannett, which was rejected as undervaluing the company. DFM then accumulated a 7.5% stake in Gannett, sparking allegations of a proxy contest. Following unsuccessful attempts to gain board representation in May 2019, DFM reduced its shareholding to 4.2%.

On August 5, 2019, New Media Investment Group—the parent company of GateHouse Media and managed by private equity firm Fortress Investment Group (owned by SoftBank until May 2024)—announced plans to acquire Gannett. Apollo Global Management provided financing for the $1.792 billion transaction through a loan. Although GateHouse was technically the surviving entity, the combined company adopted the Gannett name, appointing Michael E. Reed, CEO of GateHouse’s parent company, as CEO. The new leadership signaled intentions to address operational "inefficiencies," indicating possible cost reductions and workforce downsizing.

In December 2019, CNBC reported that Gannett was among Fortune 500 companies that paid an effective federal tax rate of zero or less in 2018 due to provisions from the Tax Cuts and Jobs Act of 2017.

By 2022, Gannett’s board—lacking members with journalism backgrounds—compensated CEO Mike Reed with a $900,000 base salary plus long-term stock incentives amounting to $7.7 million for 2021, his first full year post-merger. Despite this compensation package, Gannett’s stock price fell by 70% during Reed’s leadership tenure, reducing the value of his equity awards substantially.

Litigation over enabling sexual abuse of paperboys in 1970s New York and Arizona, 2019

In 2019, Gannett was confronted with lawsuits under the New York State Child Victim's Act brought by former paperboys who accused the company of permitting a district manager to sexually assault them during the 1980s. These allegations surfaced during ongoing merger negotiations and a hostile takeover attempt, with the initial complainant reaching out to Gannett executives and journalists. Karen Magnuson, then serving as Executive Editor of the Democrat and Chronicle, recommended halting investigative efforts temporarily while notifying senior management.

Chief Operating Officer Michael G. Kane responded by stating that no evidence had been uncovered and declared the issue resolved. Following New York’s removal of the statute of limitations for child sexual abuse claims, four additional lawsuits were filed in early 2020, with three more emerging in late 2020 and into 2021. In December 2020, similar accusations dating back to the late 1970s in Phoenix led to a lawsuit against Gannett and its Arizona Republic.

As the filing period under New York law ended in August 2021, another complaint was lodged by a Rochester resident alleging abuse by the same district manager. Altogether, eleven men have initiated legal action against Gannett for allegedly enabling sexual abuse of paperboys as young as eleven years old.

In July 2022, Gannett petitioned to move these cases from state court jurisdiction to the New York Workers' Compensation Board, contending that because the victims were employees, their claims should be adjudicated under workers’ compensation statutes. Despite arguments that the Board lacked jurisdiction over such matters, Judge Deborah A. Chimes initially approved this transfer in December 2022.

Nonetheless, on July 26, 2024, the Fourth Judicial Department of the Appellate Division overturned this ruling, permitting the lawsuits to continue within state court. Currently, nine plaintiff cases remain active before Judge Chimes.

Impact of COVID-19 Pandemic, 2020

In March 2020, Gannett announced workforce reductions and furloughs triggered by the COVID-19 crisis. As part of broader cost-cutting efforts, company executives agreed to a voluntary pay cut amounting to 25%.

Decline in editorial content, 2022–2024

In April 2022, Gannett’s editorial board proposed substantial cuts to opinion-based material including editorials, op-ed pieces, syndicated columns, and editorial cartoons. The decision was influenced by reader surveys revealing widespread distrust toward editorial opinions; these sections were among the least engaged with and frequently cited as a factor in subscription cancellations.

By March 2024, Gannett discontinued its longstanding premium subscription to the Associated Press (AP), ending payments for AP news dispatches, photographs, and videos across its outlets. This measure was positioned as an initiative to redirect funding toward internal departments and close resource gaps. Simultaneously, Gannett entered into an agreement with Reuters to provide international newswire content. The company continues compensating AP for election-related polling data, vote tallying services, and access to the AP Stylebook. The early termination of the AP contract—originally scheduled through year-end 2024—reflects strategic content sourcing adjustments aimed at enhancing financial efficiency.

Financial challenges and workforce reductions in 2022

In the second quarter of 2022, Gannett reported revenues of $749 million but incurred a loss amounting to $54 million. As a response, the company initiated necessary workforce reductions, which included not filling certain vacant positions. By the close of August, approximately 400 employees—equivalent to 3% of its U.S. staff—were laid off, and another 400 open roles were left unfilled. Subsequently, Gannett's stock price, which had already declined by 45% earlier in the year, fell an additional 28.5%.

Additional cost-saving initiatives were implemented in October, such as mandatory unpaid leave for all employees scheduled for December, suspension of 401(k) matching contributions, a hiring freeze, and offering voluntary buyouts. In November, the company announced roughly 200 further layoffs within its news division, representing about 6% of that segment.

To reduce expenses, Gannett discontinued print editions of six community newspapers in southeast Michigan that were part of the Observer and Eccentric group. This included the Livonia Observer along with versions serving Westland, Farmington, Plymouth, Canton, and Birmingham. These titles continue to operate exclusively as digital publications.

Gannett Co. asset portfolio

Gannett owns numerous newspapers ranked among the top 100 in U.S. circulation figures.

USA Today Network

The USA Today Network stands as the largest publishing entity bridging local and national news across the United States, with USA Today serving as its flagship publication. It facilitates integrated reporting between national outlets and local newspapers across 46 states. In 2023, the network broadened its coverage by recruiting specialized reporters dedicated to prominent entertainment personalities such as Taylor Swift and Beyoncé.

In 2021, Gannett revealed that it had provided advertisers with inaccurate data for a period of nine months, impacting billions worth of advertising placements.

Key digital ventures

• Digg — divested to BuySellAds in April 2018

Leadership and governance

Gannett’s corporate structure comprises an eight-member board of directors alongside 11 senior executives.

On October 6, 2011, then-chairman, president, and CEO Craig A. Dubow stepped down due to health concerns and was succeeded by COO Gracia Martore, who had been with the company for 26 years. Between 2005 and 2008, Sue Clark-Johnson served as president of Gannett’s Newspaper Division.

Barbara Wall was named interim CEO in May 2019 following Bob Dickey’s retirement. Mike Reed took over as CEO in June 2020 after Paul Bascobert’s tenure of approximately ten months starting in August 2019.

Corporate headquarters

Gannett’s former headquarters at Valo Park in Tysons, Virginia, completed in 2001, covered 1.5 million square feet on a campus spanning 30 acres and featured extensive athletic and recreational amenities.

In February 2024, Gannett vacated this facility and moved to a leased office space measuring 24,000 square feet in New York City effective March 31.