Gannett Informs Scripps That Cincinnati JOA Will Not Be Renewed in 2007
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) has informed The E.W. Scripps Company that the Joint Operating Agreement (JOA) involving The Cincinnati Enquirer, The Cincinnati Post and The Kentucky Post will not be renewed when it expires on Dec. 31, 2007.
Three years’ prior notification is required under the terms of the contract signed on Sept. 23, 1977, creating the Cincinnati JOA.
Gannett owns The Enquirer, which is published mornings and Sunday. Scripps owns the afternoon Cincinnati Post and The Kentucky Post.
“Deciding not to renew the Cincinnati JOA was a sad but necessary step for Gannett to take,” said Gary L. Watson, president of Gannett’s Newspaper Division. “Readership habits in Cincinnati and around the country continue to shift away from afternoon newspapers. As profitability declines and expenses rise, tough decisions needed to be made.”
“We are sorry the Cincinnati business relationship with our long-time friends and partners at Scripps will be coming to an end,” Watson said. “We wish them well.”
Under the JOA contract, the news/editorial operations of The Enquirer and The Post newspapers are separate. The Enquirer-managed JOA handles all other operations of the newspapers, including advertising, printing and circulation in exchange for a contractually specified portion of the operating income of the JOA.
The current business arrangement is expected to continue until the Dec. 31, 2007, termination date of the JOA. There are no termination fees payable under the contract.
Gannett Co., Inc. is a leading international news and information company that publishes 100 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns almost 500 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
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