Telegram’s Parent Company GateHouse in Merger Talks With Gannett, According to Reports
Thursday, May 30, 2019
_360_219_90.jpg)
Telegram could change hands for the third time in 5 years.
Both companies have seen a tremendous loss of print revenue and their respective stocks have been pounded in the past 12 months. GateHouse's stock is down nearly 60 percent from its 52-week high and Gannett is off more than 36 percent.
GateHouse is currently the largest newspaper publisher in the U.S. by number of mastheads, with 156 daily papers and 464 weeklies -- including the Providence Journal, Telegram and Newport Daily News.
Latest Merger Reports
“USA Today publisher Gannett Co. has recently held merger talks with GateHouse Media, according to people familiar with the matter, a possible deal that would bring together the two largest newspaper groups in the country,” reported the Wall Street Journal.
Gannett two weeks ago fought off a hostile takeover move by Digital First Media — owners of the Boston Herald.
Gannett "has also been speaking recently with others about potential deals, including Tribune Publishing Co. and McClatchy Co," reports the WSJ.
All the companies have struggled over the past decade with steep advertising and print readership declines. This year, both GateHouse and Gannett have had substantial rounds of layoffs, while McClatchy offered buyouts to hundreds of employees.
A deal between GateHouse and Gannett would create the largest U.S. publisher by the number of titles and circulation.
USA Today has been in merger talks with multiple newspaper groups
Managing Editor Alan Rosenberg did not respond to a request for comment on the layoffs. Across the country, GateHouse -- the Providence Journal’s parent company -- slashed a reported 200 jobs in one day.
John Hill, former Providence Journal reporter and President of the Providence Newspaper Guild, spoke with GoLocalProv.com last Thursday night after learning about layoffs at GateHouse Media's newspapers across the country including the Providence Journal.
"Part of the problem we're having is [Gatehouse] hasn't shared with us a list or number [of layoffs]," said Hill.
"We're piecing it together by talking with other guilds. We know of six [layoffs] in Providence and 5 more in Worcester. It appears to be part of a corporate-wide [effort]."
Mike Reed of the Projo's parent company told Business Insider that the cuts were "immaterial" to the company.
“Mike Reed — CEO of GateHouse’s parent company, New Media Investment Group — told Poynter media business analyst Rick Edmonds, ‘We are doing a small restructuring — at least that’s what I would call it — that I’m sure will be misreported. We have 11,000 employees. This involves a couple of hundred,’” reports Poynter.
"Today, @GateHouse_Media laid off 25% of our newsroom. We’re down to six people (including a digital editor and sports editor) to put out a paper seven days a week. Gatehouse decided we no longer needed a night editor and our executive editor. How’s this going to work? #gatehouse," Tweeted Whitney Lehnecker of the Daily Commercial in Leesburg, Florida.
In Worcester, both GateHouse owned publications -- the Telegram and Worcester Magazine -- saw staffing slashed. Worcester Magazine’s editor Walter Bird Jr. was one of the staff reportedly cut.
Worcester Business Journal reported, "Worcester Magazine’s Editor Walter Bird and Arts & Entertainment Editor Josh Lyford were laid off, leaving reporter Bill Shaner to run the only weekly alternative paper in the city.”
Related Articles
- NEW: Worcester Telegram Reporter Rips State Workers on Facebook
- Dean Starkman: Telegram & Gazette Becomes a Thanksgiving Leftover
- Worcester Telegram’s Sole Local Bidder Walks - Future in Question
- NEW: Former Telegram Building Gets $16M in Funding for Renovations
- Worcester Telegram Sold to Florida-Based Halifax Media Group
- NEW: John Henry Makes it Official - Telegram for Sale
- John Henry Goes Silent on the Future of the Worcester Telegram
- Boston Globe and Telegram Sold - Lose 94% of Value
- What the Experts Say About the Boston Globe and Telegram Sale
- REPORT: Telegram Could Sell for $3 Million, 97% Loss in Value
- For the Telegram & Gazette, a Moment of Opportunity
- INVESTIGATION: Inside the Telegram Sale
- The Living History of the Telegram
- Worcester Telegram’s New Website is the Old Fall River Herald Website; Readers React
- Worcester Telegram’s Star Reporter Quits and Blasts Owners
- Massive Cuts at The Worcester Telegram - Top Staff Fired
Follow us on Pinterest Google + Facebook Twitter See It Read It