Gannett Co. Inc. /zigman2/quotes/202050177/composite GCI +2.87% and New Media Investment Group Inc. , parent company of GateHouse Media Inc., confirmed Monday that they plan to merge in a blockbuster newspaper coupling. The deal, expected for weeks, will combine the two largest newspaper groups in terms of circulation. Gannett shareholders will receive consideration of $12.06 a share in cash in stock, based on New Media's Friday closing price, with a promise of $6.25 in cash and 0.5427 of a New Media share for each Gannett share. Gannett investors will hold about 49.5% of the company after the transaction and New Media investors will own the rest, according to the announcement. USA Today parent company Gannett named Paul Bascobert as president and CEO , and said that he would run the combined entity's operating subsidiary. New Media CEO Michael Reed will continue to lead the parent company, which the companies hope will find $275 million to $300 million in annualized cost cuts once they are merged. Gannett and New Media shares were halted ahead of the announcement, with Gannett shares trading for $10.68 and New Media stock trading at $10.34. After the official announcement, Gannett shares jumped to more than $11, while New Media shares fell to about $10.20.