The parent company of the Eagle-Tribune newspaper and related publications is merging with another Alabama-based, primarily television broadcast group.
Eagle-Tribune owner Community Newspaper Holdings and Raycom Media, both of Montgomery, Ala., said Monday they have agreed to merge, forming one of the nation’s largest privately-owned media groups.
“Quality local journalism is the foundation of Raycom Media and CNHI. This transaction will strengthen both organizations’ local content-generation efforts, as well as monetization capabilities, while positioning the combined entity for future growth and superior service to our clients and audience,” said Pat LaPlatney, president and CEO of Raycom Media.
Raycom Media owns or operates 65 television and two radio stations covering 44 markets in 20 states. CNHI owns more than 110 newspapers, websites and niche publications in 22 states. Under the agreement, CNHI will operate as a Raycom Media subsidiary, according to a statement.
“This marks an important milestone in our history as we combine two award-winning media organizations with the common mission of delivering quality local news and information across print, broadcast and digital platforms,” said Donna Barrett, president and CEO of CNHI.
“While it is contrary to the trend of separating newspapers and television properties, we believe the synergies this merger creates will only enhance our ability to deliver exceptional local content, extend our community presence and grow our respective multimedia footprints,” added LaPlatney.
CNHI had been financed by the Retirement Systems of Alabama. The government group also owns a the largest share of Raycom. The merger is expected to be completed Friday. In seven cases where markets for Raycom Media broadcast stations and CNHI newspapers overlap, the newspaper properties will be sold to a third party.
“as well as monetization capabilities” –
Have to love corporate speak. At least they didn’t use a word like “synergies”, but in both cases they mean: “You’re Fired”
Do you think there are any economies of scale in the media business? Any idea? With them all being in different markets I tend to doubt it. Certainly not the print media biz like the ET is in.
If one wanted to “control content” throut a vast population, this is one way to do it. Streamline the functions and you can homogenize the message