When Media General announced its merger with LIN Media to create what it calls the “second largest pure-play broadcast business in the US,” the speculation machine started up in an attempt to figure out what the merger meant in the long term.
The new Media General will boast 74 network affiliated owned or operated stations. The Wrap reports there’s bound to be some market overlap and inefficiencies, which as we all know can only lead to one thing: layoffs.
“They’re merging because they’re seeing some of their competitors in the pay TV arena that are getting a lot larger in terms of scale,” Dennis Wharton, Executive V.P. of Communications for the National Association of Broadcasters told TheWrap. “Broadcasters, I think, believe that they have to have scale to compete against providers who are not giving away their programming for free.”
This is particularly true after the recent announcement that Comcast and Time Warner Cable planned to merge.
However, Wharton played down the possibility of newsroom layoffs. “If there are, potentially there will be job losses in the back offices – in the areas of finance, human resources and IT,” he said. Read more