A new round of consolidation could kill off half of what were the major U.S. newspaper chains just a few months ago. But the possibility of platform cash is sparking hope.
By gutting local advertising overnight, COVID-19 has accelerated strategies — like cutting print days, corporate consolidation, or even closing down offices — that publishers had hoped could wait a while longer.
The coronavirus pandemic is proving the value of local news to millions of readers, driving up subscriptions. But the advertising collapse is knee-buckling. “If it’s a couple of months, we’ll make it through. If it’s six months, all bets are off.”
The multi-trillion-dollar CARES Act should extend a lifeline to many small local publishers. But for bigger companies and chains, the help they’ll receive is still up in the air — “It’s very unformed.”
It’s generated controversy over its fundraising, its paywall, and its staffing. But it’s also about as close as a major American city has gotten to a digital news site that can go toe-to-toe with the local daily newspaper.
Will Chatham Asset Management, the hedge fund set to gain control of the company, want to operate it after bankruptcy? Or will it look to cash out via merger as quickly as possible?
What was once expected to be $200 million in annual cost savings has now grown to $400 million or more. But how much blood is left to be drawn from this stone?
Doctor, Ken. "Newsonomics: With its merger approved, the new Gannett readies the cost-cutting knife." Nieman Journalism Lab. Nieman Foundation for Journalism at Harvard, 14 Nov. 2019. Web. 16 Apr. 2024.
APA
Doctor, K. (2019, Nov. 14). Newsonomics: With its merger approved, the new Gannett readies the cost-cutting knife. Nieman Journalism Lab. Retrieved April 16, 2024, from https://www.niemanlab.org/2019/11/newsonomics-with-its-merger-approved-the-new-gannett-readies-the-cost-cutting-knife/
Chicago
Doctor, Ken. "Newsonomics: With its merger approved, the new Gannett readies the cost-cutting knife." Nieman Journalism Lab. Last modified November 14, 2019. Accessed April 16, 2024. https://www.niemanlab.org/2019/11/newsonomics-with-its-merger-approved-the-new-gannett-readies-the-cost-cutting-knife/.
Wikipedia
{{cite web
| url = https://www.niemanlab.org/2019/11/newsonomics-with-its-merger-approved-the-new-gannett-readies-the-cost-cutting-knife/
| title = Newsonomics: With its merger approved, the new Gannett readies the cost-cutting knife
| last = Doctor
| first = Ken
| work = [[Nieman Journalism Lab]]
| date = 14 November 2019
| accessdate = 16 April 2024
| ref = {{harvid|Doctor|2019}}
}}
