Hearst Acquires DallasNews, Stock Surges 200%

DallasNews, a prominent media company, saw its stock price surge by over 200% to $13.56 per share on Thursday. This significant increase was driven by the announcement that Hearst, a major media conglomerate based in New York, would be acquiring the company. This acquisition marks the end of nearly 140 years of local ownership for the Dallas Morning News, the flagship publication of DallasNews.

The acquisition, valued at $14 per share in cash, represents a substantial premium of 219% compared to DallasNews' closing price of $4.39 on July 9. Both companies' boards of directors have unanimously approved the transaction, which is expected to be completed in the third or early fourth quarter of the year. Upon completion, DallasNews will become a privately held company.

Hearst currently publishes 28 daily newspapers and 50 weekly newspapers across the United States, including influential titles such as the Houston Chronicle and the San Antonio Express-News. Jeff Johnson, president of Hearst Newspapers, stated that the acquisition aligns with the company's strategy to support reliable and impactful local media brands and invest in growing markets. Grant Moise, CEO of DallasNews, expressed confidence that Hearst's resources, expertise, and successful track record in supporting local independent news would ensure the continued prosperity of the Dallas Morning News for decades to come.

This acquisition by Hearst underscores the company's commitment to expanding its media portfolio and strengthening its presence in the digital news landscape. The deal is anticipated to bring synergies and enhanced content offerings to both entities, further solidifying Hearst's position as a leading player in the media industry. The acquisition of DallasNews by Hearst is a strategic move that highlights the importance of local journalism and the value of investing in high-quality news content. The transaction is expected to create a stronger, more resilient media company that can continue to serve its communities with reliable and impactful news coverage.