Newspaper deals investigated

Monday, Jan. 24, 2005 | 9:21 a.m.

NEW YORK -- Federal antitrust enforcers are reportedly investigating plans by Gannett Co., the nation's largest newspaper publisher, and the New York Times Co. to acquire or invest in local rivals.

The Wall Street Journal said the Justice Department is investigating Gannett's proposed buyout of HomeTown Communications Network Inc., a Midwest community-newspaper publisher based in Livonia, Mich., and has opened a preliminary inquiry into the Times' plans to take a 49 percent stake in Metro Boston, a free daily that competes with the Boston Globe, which is also owned by the Times.

While both transactions are relatively small, the Journal said they suggest future deals also could face tough scrutiny.

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