Gannett (GCI) a name seeing a recent surge in call buying with over 9000 January $6 calls and 9000 April $6 calls now in open interest.

GCI has a lot of resistance at $5.85 and a move above would break shares out of a weekly 21-EMA consolidation and target a move to $8.

GCI is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. GCI delivers essential content, marketing solutions, and experiences for curated audiences, advertisers, consumers. Its current portfolio of trusted media brands includes the USA TODAY NETWORK and has three segments: Domestic Gannett Media, Newsquest and Digital Marketing Solutions.

GCI has a market cap of $740M and trades 11X FCF and 6.3X EBITDA but growth is clearly lacking, so need to find the catalyst here to unlock value. GCI is seeing success in digital with 10% growth seen in 2025, accelerating from 2024.

Consolidation is a theme with recent reports that David Hoffman is interested in buying Lee Enterprises (LEE), a media peer.

Another potential catalyst is the DOJ case against Google’s advertising tech business, a potential court loss seen in Q4. Another possible catalyst is asset sales.

Looking at the latest quarter’s call, GCI saw strong momentum across key financial metrics like FCF and EBITDA while audience surpassed 200 million average monthly unique visitors for the first time, up 7% driven by political events, the Paris Olympics and the kickoff to football season. GCI launched a partnership with BetMGM to further monetize its content platform. Q3 digital-only subscription revenue surpassed $50 million and digital-only ARPU climbed above $8.

AI can enhance operational efficiency and increase the monetization of both current and archived content. GCI is actively engaging with several AI companies and anticipate forming additional partnerships.

GCI also noted it has a number of asset sales in the pipeline.

Considering all the potential catalysts and a strengthening digital/AI opportunity, those GCI April $6 calls look cheap at $0.75