By: E&P Staff
GateHouse Media — formerly Liberty Group Publishing — is on the hunt for more acquisitions.
The company, which plans to go public, has been borrowing money to gobble up more small newspapers.
“They’ve been piling on debt in order to grow,” Lou Ureneck, director of Boston University’s business and economics journalism program, told The Boston Globe. “The danger from the public point of view is that the debt burden gets so high that the company begins to drastically reduce its expenditures on the coverage of news.”
GateHouse management said it wants to take the clustering approach in small cities and towns, according to the Boston Globe, and then take advantage of centralizing operations and cutting costs.
GateHouse bought Community Newspapers Co., a Boston-area chain of 93 weeklies and other pubs, from Patrick Purcell for $230 million earlier this year.
The company, based in Fairport, N.Y., publishes 75 daily newspapers, 231 weeklies, and 117 shoppers.