• by Ray Schultz , February 19, 2025

Gannett is divesting the Austin American-Statesman and selling it to Hearst, the company announced on Wednesday.  

The firms have signed an asset purchase agreement, the terms of which were not disclosed.

The deal is expected to close in the first quarter of 2025. Proceeds from the sale will be used for debt reduction, Gannett says.

"The sale of the Austin American-Statesman from our portfolio is a strategic decision that will complement the Hearst brand while positioning Gannett and the USA Today Network of more than 200 local publications for future growth,” says Michael Reed, chairman and chief executive officer of Gannett.

Founded in 1871 as The Statesman, the newspaper has won numerous awards and was a Public Service Pulitzer Prize finalist in 2023. 

"This acquisition complements Hearst's set of newspapers and reinforces our commitment to delivering high-quality journalism," says Jeff Johnson, president of Hearst Newspapers. "It aligns with our strategy to invest in thriving communities with strong potential.” 

Hearst Newspapers publishes 26 dailies and 52 weeklies in the U.S.

“We look forward to welcoming the Austin American-Statesman team to Hearst, joining 2,300 committed Hearst Newspapers professionals across the country," Johnson adds.