The imminent News Corp takeover of APN News & Media’s Australian Regional Media (ARM) could see 300 jobs and printing services cut.
News Corp currently holds a 14.9 per cent stake in ARM – which consists of 12 daily newspapers and 60 community papers – however the media giant won a bidding war for the assets in June with a $36.6m proposal to be voted on by APN shareholders this Friday.
According to The Australian, when the acquisition is complete News Corp will seek to implement ‘back office synergies’ which is expected to downsize printing and distribution functions and will see 300 jobs axed. There are currently no plans to shut down any ARM titles.
APN currently prints newspapers from four plants situated across regional Queensland in Rockhampton, Toowoomba, Warwick and Yandina.
It is reported the cuts will be implemented over an initial phase, with a subsequent round of cost cuts to follow after News Corp properly assesses the ARM business in regional Queensland and northern NSW.
In its half year results, ARM recorded a six per cent drop in revenue to $89m and a 42 per cent plunge in EBITDA to $4.7m.
The deal remains subject to Australian Competition and Consumer Commission (ACCC) approval, with a decision expected by the end of next week.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter