- Investors are bailing out of New Media Investment Group (NEWM -10.5%) today on no apparent news.
- Trading volumes are running more than 8 times average at 2.18M shares today.
- The company on Wednesday came to a deal to buy The Columbus Dispatch newspaper along with weekly papers, magazines and distribution.
- And yesterday, New Media Investment CEO Mike Reed briefed the newspaper staff about the prospect of job cuts, saying the paper would be cutting staff but without detailing exactly where. New Media unit GateHouse media has a reputation for buying papers and slashing staff.
- Meanwhile, Moody's says that New Media's acquisition of the paper has no immediate impact on its ratings.