Newcastle Closes Purchase of DJ Local Media Group, Will Restructure Gatehouse Debt
Newcastle Investment Corp. (NYSE: NCT)(“Newcastle” or the “Company”) announced today that it has acquired Dow Jones Local Media Group (“Local Media Group”) from News Corp for $87 million. The Company made a total equity investment of $54 million, including transaction expenses, and financed the remainder of the purchase price with $33 million of debt.
Local Media Group operates 33 local publications, including 8 daily and 15 weekly newspapers, in 7 states. Many of these publications have been providing vital local content to their communities for over 75 years.
The Local Media Group operations will be managed by GateHouse Media, Inc. (“GateHouse”), one of the largest publishers of locally based print and online media in the United States with a portfolio of products that includes over 400 community publications and approximately 350 related websites. GateHouse is an affiliate of Fortress Investment Group, Newcastle's manager.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.