GateHouse Media IPO today.....and everyone says newspapers are dead

Posted Oct 25th 2006 9:51AM by Jon Ogg
Filed under: Deals, Launches

GateHouse Media (GHS) priced 13.8 million shares at a price of $18.00 in its IPO set for today. That 13.8 million shares is above the initial 11.5 million shares planned in the filing and the pricing was at the top of the $16.00 to $18.00 range.

Goldman Sachs and Wachovia were the lead underwriters. Co-managers were listed as Bear Stearns, Allen & Co and Lazard. All the terms from the IPO can be found on the company's release here.

So who says newspapers are dead? GateHouse specializes in publishing local print and online media such as local newspapers and online content. A good background piece can be found on the company's investor site. The company has some 75 daily newspapers with 405,000 paid subscribers, 231 weekly newspapers with total paid circulation of 620,000 and free circulation of 430,000. It owns 117 local shopping free ad-only magazine/papers with circulation reaching 1.5 million; and it owns 230 locally-focused web sites. In 2005 the company lost almost $10 million on $205 million in revenues.

Below is a good geographic map showing the company footprint for its daily and weekly papers:

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Reader Comments (Page 1 of 1)

10-26-2006 @ 2:15PM

J.B. Simpson said...

In the case of GateHouse Media, you will find that of the 34.5 million shares "outstanding," GateHouse Media has released only 13.8 million, 12.5 million of which are held by Fortress and GateHouse insiders.
Looking deeper, you find GateHouse Media's financials to be terrible. They claim $1.2 billion in assets, $500 million being Goodwill.
They spend $343 to make $383 million and carry $750 million in long-term debt.
Once GateHouse/Fortress releases the rest of the 34.5 million shares, this puppy is headed for the cellar.
Enough propaganda.

DO RESEARH, RESEARCH, RESEARCH.