Key Takeaways:
- USA TODAY Co. has agreed to acquire The Detroit News from MediaNews Group in a deal expected to be completed by the end of the month.
- The Detroit News will continue to publish separately from the Detroit Free Press, which is also owned by USA TODAY Co.
- The acquisition reinforces USA TODAY Co.’s commitment to local journalism in the Detroit metropolitan area.
- The deal marks a return for The News to its former corporate parent, USA TODAY Co., which previously owned the newspaper from 1986 to 2005.
- The acquisition is expected to enable the continued delivery of trusted, high-quality news and content to audiences and advertisers in the region.
Introduction to the Acquisition
The media landscape in Detroit is undergoing a significant change with the announcement that USA TODAY Co., the owner of the Detroit Free Press, will acquire The Detroit News. The company has agreed to a binding letter of intent to purchase The News from MediaNews Group, with the transaction expected to be completed by the end of the month. The terms of the deal have not been disclosed, but the acquisition is seen as a strategic move to reinforce USA TODAY Co.’s commitment to local journalism in the Detroit metropolitan area.
Background on The Detroit News
The Detroit News has a rich history, dating back to its founding in 1873 by James E. Scripps as The Evening News. Over the years, the newspaper has marked several firsts, including founding WWJ-AM (950) in 1920, pioneering aerial photography in 1931, and winning three Pulitzer Prizes. The News has also been at the forefront of innovation, launching broadcast television in Michigan in 1947 and becoming one of the first newspapers to distribute content on the World Wide Web in 1995. With nearly 3 million users every month, The News is a leading source of digital news and one of the top regional digital news sources in the nation.
The Joint Operating Agreement
The Detroit News and the Detroit Free Press have a complex history, with the two newspapers operating under a joint operating agreement from 1986 to 2022. The agreement, which was the largest of its kind in the United States, allowed the business operations of the two newspapers to be merged under the management of USA TODAY Co., while the newsrooms competed against each other under separate ownership. The agreement was contested in courts, with the U.S. Supreme Court deadlocking over an attempt to block it in 1989. The joint operating agreement came to an end in December 2022, and The News had planned to launch a separate Sunday paper, but those plans were abruptly delayed.
The Acquisition and Its Implications
The acquisition of The Detroit News by USA TODAY Co. marks a return for the newspaper to its former corporate parent. The deal is expected to enable the continued delivery of trusted, high-quality news and content to audiences and advertisers in the region. The acquisition is also seen as a strategic move to reinforce USA TODAY Co.’s commitment to local journalism in the Detroit metropolitan area. While the terms of the deal have not been disclosed, the company has announced that it will finance the purchase in part with cash and with funds managed by Apollo Global Management, its primary lender.
Historical Context and Precedents
The acquisition of The Detroit News by USA TODAY Co. is not without precedent. In 1939, Cox Enterprises purchased the Atlanta Journal, and in 1950, it purchased the Atlanta Constitution. The two newspapers continued to publish separately until they merged as the Atlanta Journal-Constitution in 2001. Similar deals have prompted scrutiny from the Department of Justice, and it is likely that the acquisition of The Detroit News will be closely watched. However, USA TODAY Co. has announced that The Detroit News will continue to publish separately from the Detroit Free Press, which should alleviate some concerns about the impact on media diversity in the region.
Conclusion and Future Outlook
The acquisition of The Detroit News by USA TODAY Co. is a significant development in the media landscape of Detroit. The deal reinforces USA TODAY Co.’s commitment to local journalism in the region and is expected to enable the continued delivery of high-quality news and content to audiences and advertisers. While the terms of the deal have not been disclosed, the acquisition is seen as a strategic move to strengthen USA TODAY Co.’s position in the market. As the media landscape continues to evolve, it will be interesting to see how the acquisition of The Detroit News plays out and what implications it may have for the future of local journalism in Detroit.
