Before I start this piece, be aware that no one involved is speaking on the record, and much could change before all is said and done, but it certainly appears that two giant newspaper companies, Gannett and Gatehouse, are working on a merger.  If that does happen, the newly-merged corporation will own one out of six local newspapers in the United States, 265 total (plus USA Today).

Why is this an important local story?  Because Indiana’s largest newspaper, the Indianapolis Star, is owned by Gannett.  But that’s not all.  Gannett owns four other newspapers in the Hoosier state.  They include:

–The Journal and Courier in Lafayette

–The Star Press in Muncie

–The Palladium-Item in Richmond

–The Evansville Courier & Press

 

Gatehouse Media owns the following local newspapers in our state:

–South Bend Tribune

–Times Mail of Bedford

–Evening World of Spencer

–The Herald Times of Bloomington

–The Hoosier Topics of Cloverdale

–Reporter-Times of Martinsville

–Mooresville-Decatur Times

 

If this transaction happens, it is clear that some employees will lose their jobs in the administrative staffs if and when the companies are combined.

Rick Edmonds, writing in Poynter.com, reports this:

“Savings will come as corporate and backroom functions are consolidated, with many on the business side of Gannett losing their jobs. Both companies have editing and production hubs that can be combined, and events businesses that are likely to grow.”

The big question in my mind is – what will happen to journalists working at the Indianapolis Star and the other four newspapers owned by Gannett in Indiana?

If this business deal happens as reported so far, Gatehouse will essentially acquire Gannett.  Claire Goforth of DailyDot.com is not optimistic about a giant Gatehouse Company in terms of jobs for journalists.  Here is what she wrote:

“GateHouse is notorious for acquiring media companies, even profitable ones, and stripping them of assets and staff. In May, the company laid off at least 159 employees nationwide in a series of cuts that the CEO referred to as ‘not material.’ Gannett has also experienced waves of layoffs and buyouts, most recently in January.”

I have written in the past about how the Indy Star is a shell of what it once was in terms of journalistic staff levels.  However, the reporters now working at the Star are good people and excellent journalists.  I know many of them and they are dedicated to their work.

I especially worry about the four smaller newspapers in Indiana and how their staff levels could be drawn down by Gatehouse.  Those papers have already endured many layoffs by Gannett.

I am no expert in the business of newspapers, but anyone can see the business model of today is not working.  Print subscriptions are down and digital has not come close to closing the revenue gap.

But I do know this.  There is a tremendous demand for local news.  I look at my analytics for this local Fishers Web blog and my podcasts – I know there are plenty of people hungering for news about their local community.

Of course, I am a volunteer journalist with few expenses so I do not charge for subscriptions, and that adds to the number of people reading this blog and listening to my podcasts.  I have no idea how many readers & listeners I would have if there would be a subscription fee.

If the quality of the journalism goes down due to staff cuts, it will be harder to sell subscriptions, print or digital, for the newspapers in this new company.

There is a big difference between journalism and stenography.  Journalists work hard to get at the facts and find the truth, putting stories into context for the readers.  With fewer journalists on the job, there will sadly be more stenography (just reporting what people say and write) and less genuine journalism.

If this deal is consummated, my thoughts will go to the many journalists concerned about a possible pink slip once this is done.  Too many local newspapers have gone out of business in the last few years.  Too many good journalists have lost their jobs already.  My hope is that a business model is found to maintain and (in some cases) restore local journalism.