Gannett, Gatehouse talking merger

Yeah, I know some may not have other options, but if I were offered that to live in Austin, I’d give the offer the one-digit salute and make a career transition.

 

That is true. I work for a GateHouse paper and most of the designers I deal with work from home.

 

The Gannett/GateHouse bean counters making their "judicious reductions" over the next 24 months:

 

I'm old enough. And it's an apt comparison.

 

Can't wait for 2021, when all the USA Today readers (whoever they are) bitch about there only being two six-page sections in it for $4 a copy.

 

They didn't do that in 2015. Would have been a nice option to not have to move cross country.

 

Outside of copy editors and some managers, I doubt there is much redundancy. Out here they'll combine Salem and Eugene - you would think that would at least double the size of a state politics beat. It will probably be cut to one person (if Eugene even covers Salem). One person each for the Beavers and Ducks (with maybe a columnist split between the two and other things).
But when you are expecting $300mil annual savings on a deal that cost $1.4 bil - my guess is that they don't expect newspapers to be around in five years. They need their money out quickly.

 

I'm betting somebody's printing facility goes dark, between Eugene's and Salem's, as well.

 

Salem has only 1 sportswriter (!!!!), and Eugene no longer covers Oregon State, except for something big and rare. They'll have to find "efficiencies" elsewhere, which I'm sure they will.

 

Salem hasn't had a press room for a decade - printed out of Portland I believe. Second and third largest cities in Oregon (more than 300k in population) will like have a combined news force of about 15 to 20.

 

Yeah, you should.

Gatehouse just announced their second quarter results. EBIDTA was 32 million dollars. Interest expense was nine million and dividends were 23 million. So Gatehouse paid out everything it earned to the banks and shareholders.

Revenues continue to drop and Gatehouse will pack up another 700 or so in debt from buying Gannet. Gatehouse pays about 8.5% for its debt now. Assuming they pay the same rate then they will need to come up with another 60 million to pay debt.

So where will Gatehouse going to get the money if revenues continue to drop. And advertising revenues are falling off a cliff.