McClatchy, a major media company and parent of The Fresno Bee, and accelerate360, a magazine publisher and distribution business, have announced plans to merge.

Both companies are owned by Chatham Asset Management, a New Jersey-based hedge fund.

The merger would combine McClatchy’s 30 newsrooms, including the Miami Herald and Kansas City Star, with accelerate360’s content arm, a360media, which produces magazines like Us Weekly and Woman’s World.

Tony Hunter, McClatchy’s current CEO, would lead the new entity.

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Merger Aims to Create Value and Boost Profits

“At the highest level, this creates value that, separately, both of us cannot do,” Hunter said. The merged company would reach approximately 100 million unique readers annually, potentially tripling profits and revenues.

Hunter emphasized that McClatchy’s journalistic standards would be maintained. “We stand for journalistic excellence. We have high standards. We built trust over 160 years that can be lost immediately,” he stated. “I’d never put that at risk.”

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Controversial Tabloids and Consultant Excluded from Merger

The merger excludes accelerate360’s tabloid publications, such as the National Enquirer, and controversial consultant David Pecker will not be involved in the new organization.

While the merger presents opportunities for growth, it also raises ethical questions due to a360media’s history under its former name, American Media, Inc. (AMI). The company faced scandal over its “catch and kill” practices, particularly during the 2016 presidential election.

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Potential Job Losses and Finalization Timeline

Hunter acknowledged that some job losses are likely due to process automation and back-office efficiencies, but stated he doesn’t anticipate cuts to content producers.

The merger agreement is expected to be completed over the next few months, with the possibility of a new name for the combined company.

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