Austin American-Statesman Sold to Hearst Corporation

Categories: Texas Business NewsTexas LifestyleTexas News

News Summary

The Austin American-Statesman, a landmark in Texas journalism for over 154 years, has been sold from Gannett Co., Inc. to Hearst. This acquisition expands Hearst’s presence in Texas, as they already own several newspapers in the state. The transfer, anticipated to close by April 2025, is a strategic move to enhance local journalism amid ongoing challenges within the industry. Hearst also plans to invest in the publication’s community platforms to improve local news coverage.

Austin Celebrates New Ownership for Its Beloved Newspaper

Austin is buzzing with excitement as the historic Austin American-Statesman will soon welcome new ownership. After an impressive run of over 154 years, the iconic newspaper is changing hands from Gannett Co., Inc. to Hearst, a business that’s no stranger to the media game. The transition is expected to wrap up by April 2025, marking a fresh start for this cherished local institution.

Expanding Reach in Texas

This acquisition goes beyond mere dollars and cents; it’s part of Hearst’s strategy to strengthen its roots in Texas. Currently, Hearst is no newcomer to the Lone Star State, as it owns notable newspapers including the San Antonio Express-News and the Houston Chronicle. With the Austin American-Statesman joining the ranks, the company will ramp up its game, operating an impressive total of 25 daily and 52 weekly newspapers across the U.S.

While the nitty-gritty details of the deal remain a closely guarded secret, this move demonstrates Hearst’s commitment to enhancing local journalism. This announcement follows Hearst’s launch of Austin Daily last year, which focuses on the vibrant culture and politics of Austin, getting right into the heart of local matters.

A Walk Down Memory Lane

The Austin American-Statesman boasts an extensive history, having been founded in 1871 as the Democratic Statesman. Over the decades, the paper has evolved, merging with the Austin Tribune and embracing its current name. This newspaper has changed ownership several times, with its most recent shift occurring in 2018 when it was purchased by GateHouse Media for a whopping $47.5 million—a merger with Gannett followed shortly after in 2019.

Navigating Current Challenges

Statesman has faced some headwinds. In 2023, its combined print and digital circulation dropped to 70,733, down from 79,545 in the previous year. The newspaper has also seen a significant reduction in newsroom staff—from around 200 employees in 2013 to just 41 in 2023. This decline mirrors a larger trend in the newspaper industry, grappling with decreasing advertising revenues and overall circulations.

Despite these challenges, the Austin American-Statesman remains a vital voice for the local community. A noteworthy development took place in 2021 when the newsroom staff unified to form a union, and after three years of tireless negotiations, they recently managed to secure a pay increase. This achievement highlights a growing recognition of the importance of high-quality journalism in today’s media landscape.

Looking Ahead

During the acquisition, Hearst will also take on the paper’s community publications, as well as popular digital platforms such as Austin360 and Hookem.com. This strategic addition to Hearst’s portfolio reflects the company’s intention to bolster local news offerings, even amid concerns that resource-sharing might impact localized coverage.

Staying Connected with the Community

In a changing media environment, the Austin American-Statesman continues to be a cornerstone of Austin’s information landscape. It goes head-to-head with local television stations, the NPR affiliate, and an array of other publications, contributing to the rich variety of news and information available to residents.

As Gannett shifts its focus to managing debt, looking to trim over $110 million by the end of 2024, this ownership transition could very well invigorate the Austin American-Statesman, enabling it to continue its mission of delivering top-notch journalism. The community has a vested interest in seeing how this latest chapter in the newspaper’s long and storied history unfolds.