Two of the largest newspaper chains in the country are reportedly discussing the possibility of a merger.
According to the Wall Street Journal, Gannett Co. and GateHouse Media have held talks about a possible merger.
GateHouse Media publishes 156 daily newspapers and 464 community publications. The company operates in approximately 615 markets, according to its website. Gannett Co. owns USA Today, more than 100 local media brands, as well as the digital market services companies ReachLocal and SweetIQ.
In May, Gannett fought off a hostile takeover bid by Digital First Media (also known as MNG Enterprises), which had mounted an earlier attempt to acquire Gannett in January. According to a letter from Digital First Media to Gannett’s board of directors, Gannett had not “demonstrated that it’s capable of effectively running this enterprise as a public company.”
Both Gannett and GateHouse have recently made significant cuts to their newsrooms. Gannett reportedly laid off as many as 400 employees, according to the NY Post.
The Nieman Journalism Lab reported in May that GateHouse will be laying off around 200 newsroom employees. According to the report, GateHouse did not release specific numbers related to cuts but the company said it plans to bring in roughly 30 journalists to work in regional teams.
Talks about a merger comes at a time of great transition for news media at the national, regional and local level.
In Arkansas, the state’s largest newspaper – the Arkansas Democrat-Gazette – has announced it plans to shift its print subscribers in the 63 counties where it has been circulated completely to digital by the end of the year. Publisher Walter Hussman says the company’s plan is to cease publication of a print edition for the paper, except for the Sunday edition.
In an Arkansas Democrat-Gazette article, Hussman said the paper needs to convert at least 70 percent of subscribers to digital for the plan to work and be profitable.
“It may not work,” he said. “It’s a risk, but it’s a risk we’re willing to take. We want to remain a viable journalistic enterprise in Arkansas and we don’t see any other way to do it.”
READ MORE: From Daily to Digital: Walter Hussman and the Future of Newsmedia