Newspapers consider merger to stay afloat

By: Erin Floro

 

All across the country newspapers are facing an economic crisis, with more than 24,000 jobs being cut this past year.  The Internet is taking over not only their readers but also television, radio, and magazine audiences. 

 

With this decline and dropping revenues, some newspapers are trying to restructure to stay alive.  This is the case for the Star-Telegram, a Fort Worth Texas paper.  Staffed with 400 journalists its newsroom was once considered huge for a paper its size.  This paper has been a moneymaker for decades. 

 

On Friday, November 7, the Star-Telegram announced it may collaborate with the Dallas Morning News, it’s oldest rival.  Advertising, its major source of revenue dropped 17.5 percent in September.  Annual revenue is $40 million lower than 2006.  Stock price of its parent company, the McClatchy Co., fell 87 percent last year.  Analysts have speculated bankruptcy.

 

The Star-Telegram has eliminated 250 positions three times this year, accounting for one-fifth of the work force.  Its historic headquarters building in downtown Fort Worth has been put up for sale, shocking to many who want the presence of the paper to remain in the business district. 

 

Employees of the newspaper are also very concerned about job security with the approaching merger.

 

Falling circulation has affected both papers.  In the past year, the Star-Telegram circulation fell to 3.9 percent while the Morning News reported a 9 percent drop in only six months.  They are looking at combining their daily print runs as printing is a major expense.

 

With only 220 journalists, including those who work online, declining revenue, and their overwhelming debt, the Star-Telegram believes that the consolidation with the Morning News makes sense.