5. The largest newspaper companies in the U.S. are set to combine
A merger between the 2 largest newspaper chains in the U.S., GateHouse Media and Gannett, is expected to be announced this morning, Axios' Sara Fischer tells me.
Why it matters: The combination of the two publishing powerhouses means that a single company would own 1 in every 6 newspapers in the United States, she reported last month.
Between the lines: Shares of Gannett have soared this year while the holding company that owns GateHouse, New Media Investment Group, has seen its stock tumble into negative territory despite the S&P's strong overall performance.
- Both companies saw a major boost to their stock performance when news of the merger was first reported on July 18.
- The market clearly likes the merger, as GateHouse has a reputation for slashing costs and consolidating resources.
- However, it may be a case of buy the rumor sell the news.
The big picture: Ken Doctor of Nieman Lab reports: "The combination — which parties say will take the Gannett name and its headquarters outside D.C. in McLean, Virginia — produces a company that will likely own and operate 265 dailies and thousands of weeklies across the country. ... It will claim a print circulation of 8.7 million — dwarfing what would become the new No. 2 company, McClatchy, and its 1.7 million."