Market Watch: Gannett merger with GateHouse confirmed at $12.06 a share in cash and New Media stock

Gannett Co. Inc. GCI, +3.49% and New Media Investment Group Inc.NEWM, -7.29%, parent company of GateHouse Media Inc., confirmed Monday that they plan to merge in a blockbuster newspaper coupling. The deal, expected for weeks, will combine the two largest newspaper groups in terms of circulation. Gannett shareholders will receive consideration of $12.06 a share in cash in stock, based on New Media’s Friday closing price, with a promise of $6.25 in cash and 0.5427 of a New Media share for each Gannett share. Gannett investors will hold about 49.5% of the company after the transaction and New Media investors will own the rest, according to the announcement.