GateHouse Media acquires The Nantucket Independent
The Nantucket Independent, the largest circulation newspaper on the island, has been acquired by GateHouse Media New England.

The Independent was founded in 2003 by Editor and Publisher Don Costanzo, and since its inception has compiled an impressive record of editorial accomplishments and business growth. Year-round circulation is approximately 10,000 copies; that increases to 14,000 during the peak summer months.

Don Costanzo will remain with the paper for a transition period, while current Associate Publisher Dan Drake will assume the role of Publisher.

"This acquisition will provide The Independent with the resources it needs to take it to the next level," said Costanzo. "Our readers can be assured that GateHouse will sustain and enhance a tradition that began not more than five years ago with little more than an idea and a passion."

"The Nantucket community has given The Independent a wonderful reception over the past five years," said Dan Drake. "With GateHouse's involvement, we are assured of the resources to become the island's most important print and online source of news and information. Also, we are now in the position to provide a broader range of capabilities and reach to our advertisers. We look to the future with great excitement."

The acquisition expands the reach of Gatehouse's family of newspapers beyond Cape Cod to the islands.

"The preservation of The Independent and its vitality will be rooted in local autonomy, an islandcentric focus and additional resources," said Kirk Davis, President and CEOr, GateHouse Media New England. "We are nothing less than honored and privileged to be here."

The Independent has earned numerous awards for editorial excellence, including four-time finalist for "Newspaper of the Year" honors from the New England Press Association. It has also won NEPA's 2006 and 2007 Advertising General Excellence.

Terms of the transaction were not disclosed.

ANOTHER LOCAL NEWSPAPER SALE IMMINENT

The Inquirer & Mirror was acquired by the Ottaway Newspaper chain, a Dow Jones subsidiary, in 1990. Dow Jones announced in late November that it was "exploring strategic alternatives for its Ottaway group of community newspapers," including "the possible sale of some or all of those papers." Dow Jones was then sold to Rupert Murdoch's News Coporation in December. Murdoch has publicly confirmed his intention to sell the Ottaway newspapers, which also include the Cape Cod Times.

With a market capitalization of approximately $60 billion, News Corporation (NYSE: NWS) is one of the largest media conglomerates in the world. In fact, it is roughly 20 times larger than GateHouse Media, the community newspaper group that recently purchased The Nantucket Independent. News Corporation holdings include massive global brands such as Fox, Direct TV, MySpace and the Wall Street Journal.

Local newspapers represent a small percentage of News Corporation's revenues. Speculation on possible buyers has centered around large national newspaper chains. Given Murdoch's stated desire to sell the Ottaway papers quickly, the announcement of yet another new

owner for the I&M is expected by mid-year. I