After much anticipation, the two largest news publishers in the country have announced that they will merge. The owner of GateHouse Media, New Media Investment Group, will acquire Gannett. Both companies bring to the table strong local brands that have produced quality journalism that is highly valued in their communities. The merger will position the new company – which is keeping the Gannett name – to address the challenges and opportunities of the digital media sphere.
Alliance President & CEO David Chavern stated, “We congratulate GateHouse and Gannett, and we look forward to working with them to fight for the future of news publishing. At a time when there is a lot of focus on the challenges facing the news industry, it’s encouraging to see two companies who are ready to face them head-on and are thinking strategically about sustaining the future of journalism.”
According to USA TODAY, there are goals to reduce the companies’ costs and position the new company to better compete with the duopoly of Facebook and Google, who currently dominate the online ecosystem.
“Consolidation is a rational response to the current challenges in the digital market for news. Facebook and Google should pay close attention and understand that, one way or another, we need to get to a system of fair compensation for news content,” added Chavern.