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Zacks Industry Outlook Highlights: Gannett, McClatchy, tronc, Rubicon Project and TEGNA

For Immediate Release

Chicago, IL – June 21, 2017 – Today, Zacks Equity Research discusses the Industry: Publishing, Part 2, including Gannett Co., Inc. (NYSE:GCI Free Report ), McClatchy Company (NYSE: MNI Free Report ), tronc, Inc. ( NASDAQ:TRNC Free Report ), Rubicon Project, Inc. ( NYSE:RUBI Free Report ) and TEGNA Inc. ( NYSE:TGNA Free Report ).

Industry: Publishing, Part 2

Link: https://www.zacks.com/commentary/118470/will-strategic-efforts-lead-publishing-stocks-to-growth

Newspaper companies are trying hard to change their business models to better position themselves in the current multi-platform media universe. These companies are trying to improve their mobile offerings, which they rightly see as lowering their dependence on traditional advertising revenues through online advertising based on user experience and personalized content. They are also trying to streamline their cost structure, strengthen their balance sheets and restructure their portfolios.

Let’s take a look at what’s happening in the publishing industry and how newspaper companies are adapting to the changing face of the media in the race for survival.

Industry’s Game Plan

Newspaper publishing companies are diversifying their revenue base. They are striving to expand their presence in broadcasting and digital products with the aim of lowering dependency on soft print media business and traditional advertising, thereby reducing susceptibility to economic conditions. In line with this, Gannett Co., Inc. (NYSE: GCI Free Report ), The McClatchy Company (NYSE: MNI Free Report ), Tribune Publishing Company, now known as tronc, Inc. ( NASDAQ:TRNC Free Report ) and Hearst Newspaper Group joined forces to form a new national advertising network – Nucleus Marketing Solutions – with the goal to assist advertisers in reaching out to a mass audience.

In Jul 2016, Nucleus Marketing Solutions collaborated with The Rubicon Project, Inc. ( NYSE:RUBI Free Report ), which operates one of the largest advertising marketplaces in the world. Publishers via Nucleus make mobile, display and video inventory accessible to advertisers on Rubicon Project's technology platform.

Newspaper publishing companies are even separating their broadcasting and digital properties from the sluggish print business. TEGNA Inc. ( NYSE:TGNA Free Report ) was formed after the parent company, Gannett, spun off its Broadcasting and Digital and Publishing units into two separate entities. The publishing division retained the name of the parent company, Gannett Co., Inc.

The recent trend seen in the industry is that of consolidation. With an aim to strengthen its position in the newspaper industry, Gannett, in Oct 2015 entered into a deal to acquire Journal Media Group, Inc., the owner of the Milwaukee Journal Sentinel and other newspapers. In Apr 2016, the company completed the acquisition of all of the remaining shares.

Journal Media Group was formed after Journal Communications and E.W. Scripps merged their broadcasting operations and split the newspaper business.

The acquisition of Journal Media Group brings in 15 dailies and 18 weeklies in 14 local markets under Gannett’s portfolio, increasing the daily and Sunday circulation by approximately 675,000 and 950,000, respectively. In Sep 2016, Gannett invested an undisclosed amount in Digg, a digital media company. This investment paves the way for USA TODAY NETWORK, Gannett’s media network, to obtain access to Digg’s industry-leading data. This is enhancing the network’s content distribution capacities.

In Jul 2016, Gannett acquired the North Jersey Media Group Inc. The buyout includes The Record (Bergen County), The Herald News, as well as their associated digital assets. Gannett, which publishes USA Today and more than 100 other dailies, is expected to benefit significantly from the aforementioned deal. This deal also solidifies the company’s presence in New Jersey.

In Jun 2016, Gannett entered into a deal to acquire digital marketing solutions company, ReachLocal, Inc. The deal, which was concluded in third-quarter 2016, will help the acquirer boost its digital offerings. The company also acquired leading golf publication, Golfweek. In Apr 2017, Gannett acquired SweetIQ Analytics Corp., a provider of location and reputation management Software-as-a-Service solutions, which will help expand ReachLocal's portfolio of products.

In Mar 2016, Gannett acquired a minority stake in Spirited Media, which operates the mobile news site Billy Penn in Philadelphia, for an undisclosed amount.

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McClatchy Company (The) (MNI): Free Stock Analysis Report
 
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TEGNA Inc. (TGNA): Free Stock Analysis Report
 
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