Digital shake-up drives newspaper deals

Newspapers are finding their business increasingly challenged as print advertising sales -- their traditional revenue powerhouse -- decline and readers’ attention shifts to the screen.

Revenues from print ads have dropped 8 percent a year for the past three years, according to Ken Doctor, analyst at Outsell. Digital advertising on papers’ websites is picking up but brings in lower revenue than print. That has left many companies turning to consolidation to trim overhead costs and expand their reach to offer a bigger audience to potential advertisers. Total deal value rose to $259 million in the quarter from $125 million a year ago.