Americas Two Largest Newspaper Chains To Merge
This episode of business wars daily is brought to you by sent pro online from pitney bowes shipping and mailing from your desk is never been simpler than with sent pro online from pitney leabeau's. Try it free for thirty days and get a free ten pound scale when you visit p._b._a. Dot com slash b w daily the <music> from wondering i'm david brown and this is business wars daily on this tuesday august thirteenth the american newspaper the paper industry has been consolidating rapidly for the last fifteen years and shedding journalism jobs as it goes now that consolidation is moving even faster last tweak the parent company of gatehouse media which owns four hundred newspapers announced it will acquire gannett for one point four billion dollars gatehouse in get at are the two biggest newspaper chains in the country. Now they'll become one. It'll keep the gannett name. That's a smart business move. The gannett brand is familiar to many of us. The flagship of its two hundred fifteen papers is u._s._a. Today it also owns the detroit free press tennessee in nashville and hundreds of smaller smaller local papers like the chillicothe gazette in ohio the new giant news organization. We'll have a presence in forty seven states and reach one hundred twenty twenty five million unique visitors according to the washington post one reason behind creating such a mammoth business is to fend off ad sales competition from facebook doc in google which together are expected to bring in fifty one percent of all digital ad dollars. This year predicts the research organization emarketer michael read c._e._o. Gate houses parent company said the merger is intended to quoting here reposition both companies for long term growth and importantly to support quality journalism it will do so in part by focusing on growing digital subscriptions but that long-term financial growth will also come from gate houses traditional method cost-cutting cutting executives have announced that they intend to shrink expenses by two hundred seventy five to three hundred million dollars. That's a large amount considering the size of the deal report the wall street journal. It'll need to impart to pay debt on the high interest loan. The parent company's taking to finance this acquisition more than two thousand. One hundred newspapers newspapers have closed since two thousand four that according to a study by the university of north carolina with this new merger reporters and editors all over the country are bracing for more layoffs. Still some local news leaders see the dealers good news. George stanley editor of nets milwaukee journal sentinel is one of the optimists lists in an email to the news industry trade publication pointer stanley said he believes the experienced gannett exacts who will run the merged company support local news just as he says the news that is essential to our democracy but may well be but it appears challenging as already thin news staffs centipede shrinking even more the deal should close by the end of the year if regulators and shareholders approved in the meantime industry observers are looking to mcclatchy newspapers newspapers and tribune company as the next possible newspaper tie up as the consolidation rolls on from wondering this is business daily. He listened to like our show. Take a second to give us a five star rating and a review on apple podcast. Would you really helps new listener spy and for that we are so. I'm david brown back with you tomorrow. Hello this episode is brought to you by centro. Online from pitney bowes shipping and mailing from your desk has never been simpler than with sent pro online and from pitney bowes with simple online is just click sand and save for as low as four dollars ninety nine cents. That's right four dollars and ninety nine cents a month. Doc send envelopes flats packages right from your p._c. And you were back to business in no time. Try it for free for thirty days and get a free ten pounds scale but only when you visit p._b. Dot com slash b w daily that's p._b. Dot com slash b w daily.