Digital First Media announced Tuesday the merger of its two largest companies Media News Group and 21st Century Media to create a new media company.
The two media companies have a combined $1.3 billion in revenue and have been jointly managed by Digital First Media in New York City. The merger, which has been in the works for more than a year, is expected to be complete within 30 days.
"It will be easier to push innovation," said John Paton, CEO for DFM. "Essentially it creates an enormous amount of efficiency within the company."
The merger will create a new company under the Digital First Media umbrella, though the name has yet to be announced. The new company will continue to reach 67 million Americans each month though more than 800 multi-platform products across 18 states.
The boards of directors of MediaNews Group and 21st Century Media recently approved the merger.
"This is the first step in the next part of the journey," Paton said. "We will continue doing what we have done investing more in digital tools, capabilities in innovation and maximizing our print products."
Prior to the merger, the two companies had separate stakeholders and operated under separate budgets and management. The merger creates a single company with one budget, one payroll and a more efficient management structure.
The merger will make future acquisitions easier if the company decides it wants access to a certain market or audience, Paton said.
"The intention of the merger is not to sell," Paton said. "It's to create a large, local media company â¦ The intention is to build."