Local Media Group

Dow Jones Local Media Group was the local-newspaper publishing operation associated with Dow Jones & Company. It developed from Ottaway Newspapers, a chain established by James H. Ottaway Sr. in 1936 after he acquired the semi-weekly Endicott Bulletin in Endicott, New York. Ottaway converted the publication into a daily within its first year and expanded through additional newspaper purchases, including the Oneonta Star in 1944 and the Pocono Record two years later. By 1970, the organization had grown to nine newspapers in the northeastern United States, when Dow Jones & Company acquired it. The group operated differently from Dow Jones's best-known national and financial publications. Its portfolio focused on community newspapers, regional dailies, weeklies, specialty publications and associated websites. The titles served geographically distinct markets in the Northeast, California and Oregon. Its flagship was the Times Herald-Record of Middletown, New York, which covered the Hudson Valley and communities connected to the New York metropolitan area. Other important daily properties included the Cape Cod Times, The Portsmouth Herald, The Standard-Times of New Bedford, the Pocono Record, The Record of Stockton and the Mail Tribune of Medford. The portfolio also included weekly and twice-weekly publications such as the Barnstable Patriot, the Inquirer & Mirror, the Exeter News-Letter, the Hampton Union, the York Weekly and the Gazette of Port Jervis. The business experienced substantial portfolio reshaping before its final sale. In 2002, Ottaway sold four daily newspapers to Community Newspaper Holdings Inc. for a reported $182 million and transferred three Essex County, Massachusetts, daily newspapers to The Eagle-Tribune for a reported $70 million. In December 2006, it sold nearly half of its remaining daily newspaper holdings to Community Newspaper Holdings Inc. in a transaction reported at $287.9 million including real estate. These disposals reflected the wider consolidation and financial pressure affecting the U.S. newspaper industry during the 2000s. After the 2013 separation of News Corporation's publishing and entertainment interests, News Corp announced on September 4, 2013, that it would sell Dow Jones Local Media Group to Newcastle Investment Corp., an affiliate of Fortress Investment Group, for $87 million. News Corp described the local newspaper portfolio as outside the strategic direction of its emerging portfolio. GateHouse Media, another Fortress-related newspaper business, operated the properties. GateHouse entered a prepackaged Chapter 11 restructuring shortly after the announcement, and the local newspaper holdings were combined with the reorganized GateHouse operation later in 2013 to form New Media Investment Group. The group consequently ceased to operate as an independent Dow Jones-branded media unit. New Media Investment Group was later renamed Gannett following its 2019 acquisition of Gannett. At the time of the 2013 transaction, the portfolio was described as comprising eight daily and 15 weekly newspapers across seven states. A 2005 circulation reference attributed approximately 282,000 daily circulation, 316,000 Sunday circulation and 119,000 daily unique visitors to the newspapers' websites. These figures are historical and should not be interpreted as current operating metrics. The group's significance lies in its role as Dow Jones's community-publishing arm and in the subsequent transfer of a regional newspaper portfolio into the GateHouse and, ultimately, Gannett newspaper networks.

The organization began in November 1936, when James H. Ottaway Sr. purchased the Bulletin, a semi-weekly newspaper in Endicott, New York. He converted it into a daily within a year, establishing the foundation of what became Ottaway Newspapers. The company added the Oneonta Star in 1944 and the Pocono Record in 1946. By 1970, the chain had expanded to nine newspapers in the northeastern United States and was acquired by Dow Jones & Company. Under Dow Jones ownership, Ottaway operated as a community-publishing complement to Dow Jones's national financial and business publications. Its assets included local daily newspapers, weekly and twice-weekly titles, specialty publications and newspaper websites. The portfolio eventually extended across California, Maine, Massachusetts, New Hampshire, New York, Oregon and Pennsylvania. The Times Herald-Record in Middletown, New York, became the group's flagship, while other prominent properties included the Cape Cod Times, The Portsmouth Herald, The Standard-Times, Pocono Record, The Record and the Mail Tribune. The chain also went through a sustained divestment program. Four daily newspapers were sold to Community Newspaper Holdings Inc. in 2002 in a transaction reported at $182 million. Three Essex County, Massachusetts, newspapers were sold in the same year to The Eagle-Tribune for a reported $70 million. In December 2006, nearly half of the group's daily newspapers were sold to Community Newspaper Holdings Inc. for approximately $287.9 million including real estate. These transactions reduced the breadth of the historical Ottaway chain and illustrated the pressure on newspaper owners to concentrate portfolios and release capital. The group was later branded Dow Jones Local Media Group while Dow Jones was owned by News Corporation. News Corp announced on September 4, 2013, that it would sell the business to Newcastle Investment Corp., an affiliate of Fortress Investment Group, for $87 million. News Corp's chief executive said that the local newspapers were not strategically consistent with the company's developing portfolio. GateHouse Media, also associated with Fortress, operated the newspapers after the transaction. GateHouse filed a prepackaged Chapter 11 case on September 27, 2013, to restructure its debt and facilitate the acquisition. Later in 2013, the local newspaper holdings were combined with the post-bankruptcy GateHouse business to form New Media Investment Group. The former Dow Jones local-media portfolio was subsequently part of the ownership structure that led to Gannett after New Media Investment Group acquired Gannett in 2019 and adopted the Gannett name. The independent Dow Jones Local Media Group therefore ceased to exist as a standalone group after the 2013 transaction. Historical descriptions of its holdings listed eight daily and 15 weekly newspapers, together with local websites and niche publications. A 2005 reference reported 282,000 daily circulation, 316,000 Sunday circulation and 119,000 daily unique website visitors; those are historical figures tied to that period rather than current performance measures.

1. 2013Sale to Newcastle Investment Corp.

   News Corp announced the sale of Dow Jones Local Media Group to Newcastle Investment Corp. for $87 million.

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2. 2013Absorption into New Media Investment Group

   The local newspaper holdings were combined with the reorganized GateHouse Media business under New Media Investment Group.

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3. 2006Nearly half of the daily portfolio is sold

   Ottaway sold nearly half of its daily newspaper holdings to Community Newspaper Holdings Inc. in December.

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4. 2002Major divestitures to other newspaper groups

   Four daily newspapers were sold to Community Newspaper Holdings Inc., while three Essex County newspapers were sold to The Eagle-Tribune.

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5. 1970Acquisition by Dow Jones

   Dow Jones & Company acquired the Ottaway organization after it had grown to nine northeastern newspapers.

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6. 1946Pocono Record is added

   The company acquired the Pocono Record two years after adding the Oneonta Star.

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7. 1944Oneonta Star is added

   Ottaway expanded its newspaper chain by acquiring the Oneonta Star.

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8. 1936Ottaway Newspapers is founded

   James H. Ottaway Sr. purchased the Endicott Bulletin in November and began building the newspaper organization that later became the Local Media Group.

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A geographically distributed local-media publisher focused on community newspapers, regional news, local advertising and related digital properties rather than national financial journalism.

• Times Herald-RecordDaily newspaper

  The group's flagship daily newspaper, based in Middletown, New York, serving the Hudson Valley and communities located in the broader suburban orbit of New York City. It was among the best-known properties in the former Dow Jones local-media portfolio.

• Cape Cod TimesDaily newspaper

  A daily community newspaper serving Cape Cod, Massachusetts. It represented the group's emphasis on regional reporting, local advertising and geographically focused print and digital audiences.

• The Portsmouth HeraldDaily newspaper

  A Portsmouth, New Hampshire, daily newspaper that formed part of the group's Seacoast Media Group operations, alongside several weekly and twice-weekly publications in the surrounding region.

• The Standard-TimesDaily newspaper

  A daily newspaper based in New Bedford, Massachusetts, published alongside a collection of regional and specialty titles associated with Hathaway Publishing.

• Pocono RecordDaily newspaper1946

  A daily newspaper serving Stroudsburg and the Pocono region of Pennsylvania. It was one of the earlier additions to the Ottaway chain and remained among the portfolio's named daily properties.

• Local weekly and specialty publicationsWeekly newspapers and niche publications

  The portfolio included community weeklies and specialty titles such as the Barnstable Patriot, Inquirer & Mirror, Exeter News-Letter, Hampton Union, York Weekly, New England Business Bulletin, Orange Magazine and other local publications. These products extended the group beyond daily newspapers into targeted community and business audiences.

• 2013Sale of Dow Jones Local Media GroupM&A

  Following the separation of News Corporation's publishing and entertainment interests, News Corp reviewed the strategic fit of its local newspaper assets.

  What changed. News Corp agreed to sell the group to Newcastle Investment Corp., a Fortress Investment Group affiliate. GateHouse Media was to operate the newspapers.

  Aftermath. The portfolio was combined with the reorganized GateHouse business under New Media Investment Group, ending the group's independent Dow Jones identity.

  Purchase price. $87 million (Announced September 4, 2013)

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• 2013Integration with GateHouse MediaStrategy

  The purchaser used GateHouse Media as the operating platform for the acquired newspapers while GateHouse addressed its debt structure.

  What changed. The local-media holdings were combined with the post-bankruptcy GateHouse organization to form New Media Investment Group.

  Aftermath. Dow Jones Local Media Group ceased to function as a standalone brand or corporate media group.

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• 2006Sale of nearly half of the daily newspaper portfolioM&A

  Ottaway continued to reduce its holdings as newspaper companies reassessed local print portfolios and ownership concentration.

  What changed. Nearly half of the group's daily newspapers were sold to Community Newspaper Holdings Inc.

  Aftermath. The sale further narrowed the group before its eventual sale by News Corp in 2013.

  Transaction value including real estate. $287.9 million (December 2006)

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• 2002Divestiture of seven newspapersM&A

  The company was reshaping its local-newspaper portfolio during a period of consolidation in the U.S. newspaper industry.

  What changed. Four daily newspapers were sold to Community Newspaper Holdings Inc., and three Essex County newspapers were sold to The Eagle-Tribune.

  Aftermath. The transactions reduced the size of the Ottaway newspaper chain and transferred the titles to other regional newspaper owners.

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• 2013News Corp announces sale of Dow Jones Local Media Group

  News Corp announced that it would sell the local newspaper portfolio to Newcastle Investment Corp., a Fortress Investment Group affiliate, for $87 million. GateHouse Media was designated to operate the newspapers.

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• 2013GateHouse files prepackaged Chapter 11 restructuring

  GateHouse Media filed for a prepackaged Chapter 11 restructuring after the announced acquisition, helping reorganize debt obligations in connection with the local newspaper portfolio.

  Bankruptcy
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• 2013Local Media Group is combined with GateHouse-related holdings

  Following the sale, the portfolio was combined with the reorganized GateHouse Media business under New Media Investment Group, ending its independent identity as a Dow Jones local-media unit.

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1. Local Media Group