New York—Newcastle Investment Corp. has acquired Dow Jones Local Media Group from News Corp. in a deal valued at $87 million.
Local Media Group operates 33 publications, including eight daily and 15 weekly newspapers in seven states. The group's newspapers include the Times Herald-Record (Middletown, N.Y.), Cape Cod Times (Hyannis, Mass.), The Record (Stockton, Calif.), The Pocono Record (Stroudsburg, Pa.) and The Mail Tribune (Medford, Ore.).
“These newspapers share a strong tradition of service in their communities and a highly talented staff,” said Robert Thomson, CEO of News Corp., in a statement. “We are confident that the papers will prosper under the new owners, but they were not strategically consistent with the emerging portfolio of the new News [Corp.].”
Publisher GateHouse Media, an affiliate of Fortress Investment Group, Newcastle's manager, will manage operations of the Local Media Group.
Newcastle, which owns approximately 52% of GateHouse's $1.2 billion of debt, also announced that it has entered into an agreement with other creditors related to a potential restructuring of GateHouse.