Mr Reed and Mr Bascobert, who spoke to the New York Times at the USA Today office in Midtown Manhattan, said that the savings involved were 8 per cent of annual costs. “So it's not a significant number – it can be achieved,” said Mr Reed.
The News Guild, which represents journalists in many of the company's newspapers, is critical to the merger. The union intends to hold the new Gannett managers on the promises they have made, ”said President of News, Bernie Lunzer, in a statement. “We will continue to demand high quality journalism.” T
Mr Reed said he would make a newsroom decision with the help of tracking the interest of readers and output journalists. “To measure production capacity at reporter level we can be stronger and healthier and do more local journalism with the same amount of resources,” he said.
It seemed unlikely that its stat-based approach to the management of a newsroom would fit well with the union. “The Society would fight me on that, and say,“ We should do business as it is 1950, ”Mr Reed added,“ I think the Society has a big problem, and that until we can sit them and make a real discussion about where the world is today, there will be inefficiencies. ”
Douglas Arthur, an analyst at Huber Research Partners, questioned Gannett's approach, noting that the New Media Investment Group and Gannett lost revenue projections in the last quarter. “The only way they can support it,” said Mr Arthur, speaking generally about the newspaper industry, “reducing costs. And it sustains itself: subscribers go down, pays less advertisers. ”
The merger raises another question: What does it mean for the newspaper industry to control smaller corporations, which are considered essential for democracy, many of which focus on finance rather than news?
The supersize version of Gannett has an awareness corporate structure. It will be managed, under a further two-year agreement, by Fortress Investment Group, a private equity firm in Manhattan. Fortress was the entity governing New Media Investment Group, a parent of GateHouse Media.