GateHouse Media to buy Gannett

After speculation, GateHouse Media's owner agreed to purchase Gannett in a deal valued at roughly $1.4 billion.

New Media Investment Group, GateHouse's parent company, signed on to buy Gannett's USA Today, the Springfield News-Leader and some 100 other daily publications.

The companies together would operate over 260 daily news operations.

Company officials estimate annual savings of up to $300 million through "increased scale of the new organization, sharing of best practices, leveraging existing infrastructure, facility rationalization and other judicious cost reductions."

New Media shareholders would own 50.5% of the combined company, while Gannett shareholders would own the rest.

Read more from USA Today.