Gannett Co. has signed an asset purchase agreement with Hearst Corp. to divest the Austin American-Statesman from the USA TODAY Network, officials with both companies announced Wednesday.
Hearst, a leading global media company that publishes the Houston Chronicle and San Antonio Express-News, is expected to close the purchase by March 31, expanding its media holdings in Texas. The purchase price was not immediately disclosed.
“Hearst has a stellar reputation in the publishing industry, and their values are uniquely aligned with ours,” said Michael Reed, Gannett chairman and chief executive officer. “The sale of the Austin American-Statesman from our portfolio is a strategic decision that will complement the Hearst brand while positioning Gannett and the USA TODAY Network of more than 200 local publications for future growth.”
The proceeds of the sale are expected to be used for debt reduction, officials said. Gannett has been divesting some of its businesses, real estate holdings and nonstrategic assets to pay down debt. It announced in September that, with its sales, it expected to pay down at least $110 million in debt by the end of 2024.
Along with the Statesman, the sale includes the newspaper’s community publications: Bastrop Advertiser, Lake Travis View, Pflugerville Pflag and Round Rock Leader. Related digital offerings such as Austin360 and Hookem.com also are part of the sale.
“This acquisition complements Hearst’s set of newspapers and reinforces our commitment to delivering high-quality journalism,” said Jeff Johnson, president of Hearst Newspapers. “It aligns with our strategy to invest in thriving communities with strong potential. We look forward to welcoming the Austin American-Statesman team to Hearst, joining 2,300 committed Hearst Newspapers professionals across the country.”
Founded in 1871, the Statesman has been named Texas Newspaper of the Year three times by the Texas Associated Press Managing Editors and more recently was recognized as a 2023 Public Service Pulitzer Prize finalist and a 2024 Edward R. Murrow Award winner, its third in the past four years.
Hearst Newspapers, the operating group responsible for Hearst’s newspapers, local digital marketing services businesses and directories, publishes 26 dailies and 52 weeklies across the U.S.
In 2018, the Statesman was sold for $47.5 million to New York-based publishing company GateHouse Media, after more than 41 years of ownership by Atlanta-based Cox Enterprises. A year later, GateHouse Media acquired Gannett Co. in a $1.4 billion deal that created the nation’s largest newspaper chain.
“The Austin American-Statesman will continue to thrive and steadfastly serve the Central Texas community like we have for the past 154 years,” said Courtney Sebesta, executive editor. “Our dedicated journalists will continue to hold those in power to account and inform our readers with quality journalism to help navigate their lives. We look forward to beginning our relationship with Hearst.”
Gannett will retain ownership of its seven other newspapers in Texas, including the El Paso Times, Corpus Christi Caller-Times and Lubbock Avalanche-Journal.
Hearst to purchase Austin American-Statesman from Gannett, expanding footprint in Texas – Austin American-Statesman
