USA Today Co., previously known as Gannett, has announced its intention to acquire the Detroit News, a significant move that will unite two of the major metropolitan newspapers in Michigan under the same corporate umbrella. The acquisition comes on the heels of the recent termination of a nearly 40-year agreement that allowed the Detroit News and the Detroit Free Press to operate collaboratively in the same market.
According to a statement from USA Today Co., both newspapers will maintain their individual operations despite the acquisition. The details surrounding the transaction remain sparse, including the sale price, which has not been disclosed. Funding for the acquisition will come through a mix of cash and financing facilitated by Apollo Global Management, the private equity firm that previously supported the acquisition of Gannett by New Media Investment Group Inc. in 2019. The deal is anticipated to be finalized by the end of the month.
Impact on Local Journalism
The Detroit News and Detroit Free Press have served the community for over a century, with the former winning three Pulitzer Prizes and the latter garnering ten. Both publications have a longstanding history of delivering news and journalism to the greater Detroit area.
In a statement, Guy Gilmore, Chief Operating Officer of MediaNews Group, the current owner of the Detroit News, expressed a commitment to preserving the unique journalistic identities of both newspapers. “Both companies have a mutual desire to ensure that these publications and their distinct journalism continue to serve the greater Detroit area,” Gilmore stated.
The two newspapers previously operated under a joint agreement established in 1989, which allowed them to share certain operational aspects while competing in the market. This arrangement, set in place under the 1970 Newspaper Preservation Act, was designed to help struggling newspapers operate together without violating antitrust laws. The collaboration allowed the papers to share resources in areas such as advertising, printing, and distribution.
A New Era for Detroit Newspapers
As of December 2023, the Detroit Free Press and the Detroit News concluded their joint operating agreement after 36 years. This shift reflects broader challenges in the newspaper industry as traditional media outlets face ongoing financial difficulties and shifts in consumer behavior.
In recent years, Gannett has taken significant steps to adapt to these challenges. Notably, in 2024, the company ceased using content from the Associated Press, signaling its struggle to maintain profitability amidst a rapidly changing media landscape.
The anticipated acquisition by USA Today Co. represents a pivotal moment in local journalism, with the potential to reshape the way news is delivered to Detroit residents. As the industry continues to evolve, the focus will remain on how these changes impact the quality and accessibility of journalism in the region.
