America’s two largest newspaper publishers will merge in an effort to combat declining circulation and plunging advertising revenue, but will still face pressure to cut costs at hundreds of already cash-strapped publications around the country.
The $1.4 billion purchase of McLean-based Gannett by
GateHouse Media, based in Pittsford, N.Y., will create a conglomerate that will
own more than 250 daily newspapers and hundreds of weekly and community papers.
The new company will retain the Gannett name and will have publications in 47
states, reaching more than 145 million unique visitors each month.
Executives from both companies extolled the deal in a news
release as an opportunity to slash up to $300 million in annual overhead costs
within 24 months while “continuing to invest in newsrooms” — creating
journalism they hope can attract more digital subscribers and advertisers at a
time when America employs thousands of fewer journalists than it did a decade
ago. Read more...
