In a strategic move that marks a significant expansion in Texas, Hearst Corporation has signed an asset purchase agreement to acquire the Austin American-Statesman from Gannett Co. This acquisition, set to close by March 31, includes the newspaper’s community publications and digital offerings, further solidifying Hearst's presence in the region. The decision comes as Gannett continues its effort to divest non-strategic assets to mitigate its debt burden.
The sale encompasses several community publications such as the Bastrop Advertiser, Lake Travis View, Pflugerville Pflag, and Round Rock Leader. Additionally, it includes digital platforms like Austin360 and Hookem.com. Through this acquisition, Hearst aims to integrate these assets into its growing portfolio, which already includes 26 daily and 52 weekly newspapers across the United States.
“The Austin American-Statesman will continue to thrive and steadfastly serve the Central Texas community like we have for the past 154 years,” said Courtney Sebesta, executive editor.
Founded in 1871, the Austin American-Statesman has a storied history of journalistic excellence. It was previously owned by Cox Enterprises for more than four decades before being sold to GateHouse Media in 2018 for $47.5 million. GateHouse Media was subsequently acquired by Gannett Co. in a $1.4 billion deal, bringing the Statesman under its umbrella. The newspaper has earned prestigious accolades, including being named Texas Newspaper of the Year three times and receiving recognition as a finalist for the 2023 Public Service Pulitzer Prizes, as well as winning a 2024 Edward R. Murrow Award.
“Hearst has a stellar reputation in the publishing industry and their values are uniquely aligned with ours,” stated Michael Reed, Gannett chairman and chief executive officer.
This acquisition is part of Hearst's larger strategy to enhance its media holdings in Texas, where it already publishes the Houston Chronicle and San Antonio Express-News. By acquiring the Statesman, Hearst reinforces its commitment to delivering high-quality journalism to diverse communities.
“This acquisition complements Hearst's set of newspapers and reinforces our commitment to delivering high-quality journalism,” commented Jeff Johnson, president of Hearst Newspapers.
For Gannett, this sale represents a crucial step in its ongoing strategy to divest certain businesses and real estate holdings. The company expects to reduce its debt by at least $110 million by the end of 2024 through these efforts.
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