U.S. bank JPMorgan & Chase Co. increased its stake in Gannett Co. by more than US$300 million, to 10.2 percent, The Associated Press reported yesterday.

The move to increase its stake, from the previous 2.16 percent, in the largest U.S. newspaper publisher was not explained in an SEC filing, according to the Wall Street Journal. However, the move could mean the bank believes the financial woes the newspaper industry has experienced over the past several years are going to be traded for a better future, the AP pointed out.

"The move appears to be a vote of confidence about a further recovery in local advertising markets, where Gannett has a significant presence," the WSJ article stated. Gannett's first quarter profits were up 51 percent, due to enormous cost-cutting measures on operating and newsprint costs. Share prices have also tripled over the past 12 months.

The 10.2 percent stake is currently worth $404 million, according to CNBC.

Gannett, which owns USA Today and 83 U.S. dailies, has reported a first quarter profit of $119.3 million, Reuters reported.