For three different reasons, Gannett’s surprise acquisition Wednesday of Journal Media Group (the former Scripps papers and the Milwaukee Journal-Sentinel) makes a lot of sense:
– In the era of digital transformation, bigger is better. A larger audience translates to better prospects for digital ad sales. The combined operations will have 100 million monthly uniques, according to the press release announcing the deal.
– Any such merger brings efficiency as corporate offices combine and shrink. Gannett said that it expects $35 million in savings and may have other cost-cutting initiatives at the ready. Smaller newsrooms are a possibility but not a certainty.
– Gannett has a suite of centralized programs — news feeds from USA Today, a common content management system, events and digital marketing services capacity — that will pay off the more markets they touch. Read more