WESTCHESTER COUNTY, NY — More Journal News staffers to be sent packing as Japanese owners contemplate if the money losing newspaper should commit #Harakiri.
The money losing The Journal News is about to be bailed out by GateHouse Media of Pittsford, NY.
GateHouse CEO Mike Reed would lead the combined company, with the report citing a $200 million target savings the companies would seek by cutting overlapping jobs and other costs mostly on The Gannet side of the business.
Local Lohud website owner Gannett is nearing a merger agreement with GateHouse Media’s offices in Pittsford, N.Y., which is near #Rochester
The money losing Gannett newspaper chain has been under pressure in the past year from investor Digital First Media to cut loses.
Reports surfaced recently of GateHouse’s interest in a combination, with The Journal News‘ parent which is controlled by Japan-based SoftBank Group through its New York City-based hedge fund Fortress Investment Group.
The Japanese owners are not pleased that the company lost $11.9 million in the first quarter of this year as revenue dropped 8 percent from a year earlier.
Gannett CEO #BobDickey jumped ship in May, with the company managed currently by #BarbaraWall, its chief legal officer as it continues to search for new CEO that wants to be in charge of the money losing newspaper chain.
Under Dickey, Gannett had been chasing a goal of signing up a million nationwide subscribers to its newspaper chains’ digital-only products, but they have yet to even reach 500,000 subscribers.
By comparison, The Wall Street Journal has a paid circulation of about 2,475,000 million copies (including nearly 1,590,000 digital subscriptions)
The New York Times had more than three million paid digital-only subscribers and more than four million total subscribers.
Gannett also publishes The Poughkeepsie Journal, which shares an executive editor with The Journal News‘ bare bones staff.
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Brian Harrod is the Publisher / Editor of the Yonkers Newswire.