McClatchy, a major media company that owns The Fresno Bee, is set to merge with accelerate360, a magazine publisher owned by Chatham Asset Management.
Driving the news: The merger will combine McClatchy’s 30 newsrooms, such as the Miami Herald and Kansas City Star, with accelerate360’s content arm a360media, known for magazines like Us Weekly and Woman’s World.
- The merger aims to create value and boost profits by potentially tripling revenues and reaching about 100 million unique readers annually.
- Hunter emphasizes that McClatchy’s high journalistic standards will be maintained to uphold the trust built over the company’s 160-year history.
The backstory: The merger excludes accelerate360’s tabloid publications like the National Enquirer, and controversial consultant David Pecker will not be involved in the new organization.
- Ethical concerns arise due to a360media’s past as American Media, Inc. (AMI) and its scandalous history regarding “catch and kill” practices especially during the 2016 presidential election.
- While some job losses are anticipated due to automation and efficiency improvements, it is stated that content producers may be preserved from cuts.
- The merger agreement is expected to be finalized in the coming months, with the possibility of a new name for the combined company.
