RIP Journal Media Group

[dixiehack]

Sale to Gannett closed on Friday. I assume the bloodbath in Milwaukee, Memphis, Knoxville and elsewhere begins shortly.

http://www.knoxnews.com/news/local/a-message-to-our-readers-375076521.html?page=1&d=mobile

 

[Dr StrangePork]

From what I've heard from a friend at one of the JMG Texas papers, in the contract of the sale there is no layoffs for the first 12 months from the JMG papers. So, I'll go ahead and predict Gannett layoffs on April 8, 2017.

 

[PaperDoll]

From what I've heard from a friend at one of the JMG Texas papers, in the contract of the sale there is no layoffs for the first 12 months from the JMG papers. So, I'll go ahead and predict Gannett layoffs on April 8, 2017.

They might want to check the wording of the agreement more closely. My understanding is the JMG group was reformulated in preparation for the sale, and it's already existed in this new form for more than 12 months.

Late-2015 Gannett rumor had the next round of layoffs coming at the end of the first quarter in response to the acquisitions. Now the talk shifted to second quarter instead.

 

[Dr StrangePork]

I know there were a few layoffs in late 2015 at a couple of the Texas JMG papers, I'm sure that was to keep with the agreement of no layoffs for 12 months.
The agreement was just for JMG papers, wouldn't surprise me if Gannett papers had layoffs to pay for the acquisitions. Although the PR spin Gannett is putting on this is pretty funny. JMG employees were told "not to worry, this is the 'new Gannett' things are a lot better now"
My buddy said the HR lady says Gannett is "encouraging celebrations of the aquisitions." Anyone with half a brain can see right through this, congrats on getting sold down the river JMG'ers. Not that JMG was all that great a company... is there such a thing anymore in the newspaper industry?

 

[Bronco77]

Scary to think about what might happen with the former Scripps/JMG papers in Florida. Gannett now owns Treasure Coast Newspapers and Florida Today, whose coverage areas are adjacent. Same deal on the southwest coast with Naples and Fort Myers. It's logical to assume there'll be some "consolidation," meaning job cuts -- if not now, then in a year.

 

[Fredrick]

What is Gannett's goal? Is it a big time moneymaker? I know the company has pretty much destroyed "journalism" as we know it and gotten rid of so many talented writers/copy editors/layout individuals. What's Gannett's goal? Make money for one person? The CEO or ? Gannett obviously isn't going to be in good shape when newspapers all go online. No money there.

 

[The Big Ragu]

Scary to think about what might happen with the former Scripps/JMG papers in Florida. Gannett now owns Treasure Coast Newspapers and Florida Today, whose coverage areas are adjacent. Same deal on the southwest coast with Naples and Fort Myers. It's logical to assume there'll be some "consolidation," meaning job cuts -- if not now, then in a year.

They all but said it when they announced the acquisition. They forecast a revenue bump of $350 million, translating to $60 million in adjusted EBITDA in the first year. And $25 million of "synergies" targeted for year two. When M&A activity is based on "synergies," (worst made-up word ever that has entered the lexicon) it means job cuts (and operations shut down) to follow.

 

[bevo]

The job cuts will come. All the JM papers have design and editing desks that will move to one of the Gannett design centers. It's just a matter of how fast they can do all the computer software changes. And what will be the fate of the JM center in Corpus Christi? And I'm sure ad jobs will be consolidated in the areas mentioned above in Florida.

 

[TexasVet]

Sounds like the best business to be in is to start your own newspaper as an inexpensive startup, make it great and sell it to Gannett for a tidy profit and then watch it die a horrible death

 

[exmediahack]

The TV side is a bit different regarding these companies.

We considered JMG to be pretty cheap except for the Milwaukee flagship while Scripps was so-so and Gannett was one of the better TV operations to work for.

I know newspaper has a different view on Gannett.

 

[lantaur]

I have heard some people in Milwaukee have already been given 2-week notices. Another said he said his job was safe, but once the reorg was done his position would be re-evaluated.

 

[Batman]

Sounds like the best business to be in is to start your own newspaper as an inexpensive startup, make it great and sell it to Gannett for a tidy profit and then watch it die a horrible death

Replace "newspaper" with "web site" and you've pretty much described the business model for about 90 percent of all online media ventures.