New Media stock offering nets $151.9M gross proceeds

THE PARENT COMPANY of the Providence Journal announced Wednesday that it launched a public offering of 7 million shares of stock for gross proceeds of approximately $151.9 million. / PBN FILE PHOTO/BRIAN MCDONALD
THE PARENT COMPANY of the Providence Journal announced Wednesday that it launched a public offering of 7 million shares of stock for gross proceeds of approximately $151.9 million. / PBN FILE PHOTO/BRIAN MCDONALD

PROVIDENCE – The parent company of the Providence Journal announced Wednesday that it launched a public offering of 7 million shares of stock for gross proceeds of approximately $151.9 million.
New Media Investment Group Inc. said in a news release that the company has granted underwriters an option for 30 days to purchase up to an additional 1,034,340 shares of stock. That offering is expected to close Jan. 20.
New Media said it intends to use proceeds for working capital and other general purposes, such as potential investments in, or acquisitions of, local media businesses.
In recent weeks, New Media has made several acquisitions, including Halifax Media Group for $280 million, and Foster’s Daily Democrat for $5 million. Halifax publishes 36 newspapers, including 24 dailies and affiliated websites.
Analyst James C. Goss of Barrington Research said New Media is following through on its plan to acquire additional media businesses.
“They are focusing on very small markets where the print and online versions of the product” are still in high demand, he said. The company, Goss said, will remain on the lookout for other properties that fit its business model.

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