Common Cause has reported on the GateHouse-Gannett merger. The merger forms an unprecedented conglomerate because of the sizes of the groups as the two largest newspaper chains. However, the article argues that while the GateHouse-Gannett merger consolidates the news industry it may ultimately undermine democracy.
Today, GateHouse Media and Gannett Co. announced plans to merge to form an unprecedented newspaper conglomerate. The $1.4 billion deal would combine the two largest newspaper chains, creating the largest newspaper publisher in the United States. A combined GateHouse-Gannett entity would own one in every six newspapers in the nation and control over 100 local news operations.
Statement of Michael Copps, Former FCC Commissioner and Common Cause Special Adviser
“The GateHouse-Gannett merger is another nail in the coffin for the state of our news and information system. Combining the two largest newspaper chains would lead to cost-cutting strategies straight out of the Wall Street playbook. This means we can expect to see more reporter layoffs and consolidated newsrooms. The profits generated from cutting costs won’t be invested into improving the news but rather to pay off financing arrangements and shareholders. Hundreds of communities and ultimately our democracy will pay the price for this deal. Less journalism and less deep-dive investigative reporting will only lead to less informed citizens.”
See full story here.