If he keeps this up, Jamie Dimon the banker could soon be known as the paper boy.
Dimon’s JPMorgan Chase added Gannett, the publisher of USA Today and other daily newspapers to its growing media portfolio that generates $5.4 billion in revenue, more than that of Time Inc., the No. 1 magazine publisher.
Gannett disclosed in filings yesterday that JPMorgan boosted its 7.4 million-share stake to 24.3 million shares, making the banking giant the company’s biggest shareholder at 10.2 percent.
Shares in Gannett yesterday shot up as much as 7 percent before settling at $16.59, up 55 cents or 3.4 percent, for a paper gain for JPMorgan of $13.4 million on its enlarged stake.
The bank’s media holdings have swelled in the past year as it assumed control of various media companies over loans it made to them.
Many of the media companies suffered in the economic meltdown, and either missed paying loans or were restructured.
The bank holds sway over Reader’s Digest Association and American Media Inc., which publishes Star and the National Enquirer, due to debt securities it holds. It also owns 12 percent of the stock of Source Interlink, publisher of titles such as Motor Trend.
JPMorgan also has acquired ownership stakes in other smaller newspapers as part of bankruptcy proceedings. The bank said it will hold the media properties as an investment.