JP Morgan Chase (NYSE: JPM) has become the largest investor in newspaper publisher, Gannett Co. after acquiring more shares of the firm, giving it a total of 24.3 million, according to a regulatory filing. The additional purchase gives the bank about a 10 percent stake in the company.
The move makes it clear that JP Morgan is expecting a rebound in the newspaper space as it only held 7.4 million shares of Gannett at the end of last year.
Gannett, which publishes the USA Today, along with several other daily papers, has struggled the past year as print media has dealt with sliding advertising revenues and falling subscriptions. However, the firm posted improved first quarter earnings last month of 49 cents a share compared to 34 cents a share in 2009.
Revenue firmed up in the period as a rebounding economy helped push sales 4.1 percent higher to $1.3 billion. Shares of Gannett Co. (NYSE: GCI) are up 3.6 percent on Tuesday to 16.60.
