Why New Media Investment Group Plunged Today
Shares of New Media Investment Group (NYSE: NEWM) declined 18.6% on Tuesday after the newspaper titan announced a merger with Gannett (NYSE: GCI).
New Media Investment Group said in a press release that the merger would create the leading print and digital news organization in the U.S. with "deep local roots and nationwide scale."
The deal will see Gannett shareholders receive $6.25 in cash and 0.5427 of a New Media share for each Gannett share they own. Together, this represents a total of $12.06 per Gannett share based on New Media's closing stock price on Aug. 2, or a premium of approximately 18% to its average price of over the preceding five days.
Quelle Fool.com
