New Media shares fall on details of $1.4 billion Gannett deal

The biggest publishing merger of the year is starting to look like a bust.

Shareholders of New Media Investment Group — the publicly traded subsidiary of newspaper owner Gatehouse Media — have sent the stock on a dizzying downward spiral since Monday.

That’s when Gatehouse, the second-biggest newspaper chain in the country, unveiled its $1.4 billion cash-and-stock deal to devour USA Today owner Gannett Corp., the nation’s largest newspaper publisher.