Gannett Co. said Monday it would acquire Multimedia Inc. in a deal estimated at more than $1.7 billion. Boards of directors at both companies unanimously approved the merger. Closing is expected to occur as soon as Multimedia shareholder and regulatory approvals are obtained. Under the merger agreement, Gannett will pay Multimedia shareholders $45.25 for each of the 37,865,078 shares outstanding, for a total price in excess of $1.7 billion. Gannett will also assume or retire Multimedia's existing debt. The deal brings Gannett's daily newspaper circulation to more than 6.4 million. Its TV stations will reach more than 14% of U.S. TV homesm, and through Multimedia's cable systems, will reach more than 450,000 cable subscribers in five states.
Copyright July 1995 Crain Communications Inc.