As New Media Investment Group Inc. completes its acquisition of Detroit’s freelance newspaper owner Garnett. Which is an executive in the nation’s most significant newspaper chain attempt to quell fears of large-scale layoffs in the press room. Michael Reed, who will be CEO after the merger, said in an interview that the deal is expected to save US$ 300 million a year, almost all from outside the pressroom, such as call centers, production facilities.
He said: “I think this is an opportunity to protect the cost of the newsrooms of the two companies, because we now have all these other things: “I can be more important than not focusing on reducing journalists,” he said. Reid does not rule out the possibility of layoffs in the company’s reporters and editors, but he declined to say how many people there might be. The new company will be named after Gannett, with approximately 5,000 newsroom staff in about 24,000 employees.
News Guild-CWA Chairman Bernie Lunzer said in a statement this month: This funding will hurt the communities in which these media organizations serve. Financing the merger, local newspapers may disappear, work Will be cut, the news industry will suffer losses. The deal will be united as the two largest daily newspaper chains in the United States. The new company will own more than one-sixth of the country’s daily newspapers, including USA Today. According to industry analyst Ken Doctor, it will reach nearly 9 million print readers. Gannett’s investors are pleased that the long-suffering newspaper has found buyers and this year’s share price has risen 14%. But shareholders of new media have been skeptical about whether the deal will succeed. Its stock has fallen 45% this year. Starting Wednesday, new media stocks will be traded on Gannett’s stock symbol GCI. The Detroit News, owned by MediaNews Group, signed a joint operating agreement with Free Press owner Gannett. This partnership, called Michigan.com, operates a comprehensive business of newspapers, including advertising, production and marketing.