The exterior of the Dallas Morning News building in downtown Dallas.(Tom Fox / Staff Photographer)
Source DMN
DallasNews Corporation, the public parent company of The Dallas Morning News and Medium Giant, has signed a definitive merger agreement to be acquired by global media company Hearst, the companies announced Thursday morning.
Medium Giant is DallasNews Corporation’s integrated creative marketing agency, with offices in Dallas and Tulsa.
Grant Moise, CEO of DallasNews Corporation and publisher of The News, and Steven R. Swartz, president and CEO of Hearst, jointly expressed enthusiasm for the agreement that will bring together two storied brands in journalism. The deal was unanimously approved by the boards of directors from both companies and is expected to close in September or October.
“For 140 years, The Dallas Morning News has earned enviable status as one of the most trusted and distinguished daily newspapers in the U.S.,” Moise said in a statement. “We’ve done so by focusing on the issues that matter most to our North Texas community and by embracing the kind of objective, accountable and skillful reporting at the heart of impactful journalism.
“The Hearst family of newspapers shares these values. Their resources, expertise and track record of supporting — and investing in — local independent journalism will ensure The Dallas Morning News thrives for decades to come.”
DallasNews shareholders will get $14.00 per share, which is 219% more than the July 9 closing price of $4.39. That puts the value of the company, Texas’ oldest continually operating company, at $74.9 million. Once the deal closes, DallasNews Corporation will become part of Hearst Newspapers, a division of Hearst.
“Hearst Newspapers is committed to supporting The Dallas Morning News’ continued success through smart investments in their digital strategy, compelling journalism and expanded audience reach,” Jeff Johnson, president of Hearst Newspapers, said in a statement. “This move aligns squarely with our strategy of backing trusted, high-impact local media brands in growth markets.”
Hearst is a diverse media company with a portfolio of 28 daily newspapers, including the Houston Chronicle, San Antonio Express-News and Austin American-Statesman, and 50 weeklies. In addition, Hearst owns 35 television stations and more than 200 magazines and has an ownership stake in cable networks A&E, HISTORY, Lifetime and ESPN. Outside of media, Hearst owns Fitch Group, a global financial services business; Hearst Transportation; and Hearst Health, a group of medical information and services businesses.
The Dallas Morning News is a leading newspaper in Texas known for its journalistic excellence, community commitment and nine Pulitzer Prizes. It was co-founded in 1885 by George Bannerman Dealey, who bought controlling interest in the company in 1926 and served as chairman for two decades.
Robert W. Decherd, a great-grandson of Dealey, is the controlling shareholder of DallasNews Corporation stock, holding the majority of voting power. Over a career spanning 50 years, he served as DallasNews Corporation’s board chairman, president and CEO.
“The News’ 140-year commitment to distinguished journalism has been extraordinarily important to the evolution of Dallas as one of America’s greatest cities,” Decherd said in a statement. “We have generations of News employees to thank for this. I’m confident that the path forward with Hearst Newspapers assures The News’ ability to continue informing and strengthening North Texas for many years to come.”
DallasNews Corporation has 439 employees, with 157 in the newsroom.
In an announcement to the staff, Moise said of the two companies, “We also share a belief that these are extraordinary times in the media business, with rapid and consequential changes in content creation, delivery and distribution. Hearst’s well-established track record investing in digital strategies, editorial excellence and audience reach will enhance our own journalistic mission.”
