Digital First pursuing Gannett

The one thing I don't understand about this is that DFM basically tries to use the newspaper to cut costs to the bone and sell off the assets. Problem is, there's not much left with Gannett properties to cut or sell. In our market, Gannett already sold the Indianapolis Star's downtown building and moved the newsroom into rented space in a mall. There aren't many assets left to sell off.

For journalism, this is really, really bad. As inept as Gannett is, it's still at least trying to be a media company. DFM's history is running a skeleton operation until it's sold off everything of value.

 

Even though I am not a Gannett fan from my experiences, I feel like this would really hurt the journalism industry if this sale happens.

 

It would. I work for Gannett and it was confirmed in a company email this morning that DFM did indeed make an offer for $12/share. That scares the hell out of me. Not just because of what that could mean for my job and newsroom but because of what this means for journalism. Could, in some ways, be a death blow.

 

I do not believe this is an exaggeration.

 

The Wall Street Journal article said DFI asked the Gannett board to stop making investments in digital. And if a media company is unwilling to invest in digital then it is just running out the string.

 

Just in case anyone was wondering, when Gannett was spun off, the newspaper division opened at $14.37 in 2015. And that's before some significant acquisitions.

 

I'm with everyone else here with no love for Gannett, but this is just bad news.

 

Ken Doctor, who is the best blogger I know of on the newspaper industry thinks that Gannett is either bought by Digital First or merges with someone else.

Ken Doctor » Nieman Journalism Lab » Pushing to the Future of Journalism

Doctor is also the only blogger I know of that concentrates on newspapers. If there is someone else out there please send a link.

 

Here's the Guild's response

NewsGuild statement on Digital First Media’s proposal to purchase Gannett – The NewsGuild – CWA

DFM owns The News, having bought it for $25 million when Gannett bought the Free Press
Gannett pays the News salaries
News and Freep have their contracts up next month
This could be the time they finally shut The News down

 

Question: Do Gannett employees have an Option C that allows them to tank the corporation's value before a possible sale to DFM/Alden? There has to be some recourse here if they're getting sold to someone who will gut newsrooms.

 

With the way the way the journalism industry is heading, it's making public relations look like a more appealing career path.