Gannett Co. has tentatively agreed to buy Army Times Publishing Co., a deal that would make the corporation, based in Arlington, Va., the chief news source for military personnel in the United States and abroad.
Terms of the deal, expected to close this summer, were not announced. A source familiar to the agreement, however, told The Washington Post the price was estimated at $40 million.Gannett publishes 90 daily newspapers, including USA Today, and operates 18 television stations, five radio stations and cable TV services.
Army Times Publishing includes six weekly publications and one monthly newspaper, among them Army Times, Navy Times, Air Force Times, Federal Times and Defense News. Its estimated circulation is 360,000.
The Post reported in its Saturday editions that Gannett had an incentive to purchase the military publishing company: It purchased printing equipment and facilities from the Army Times in 1991 and rents use of those assets to the company.
John Morton, a newspaper industry analyst, said the purchase surprised him.
"It is kind of a departure for Gannett," he said. "They haven't heretofore invested in publications of this kind."
The Army Times was founded in 1940 by Melvin Ryder, who died in 1979. The company became the Times Journal Co. in 1984.