Village Voice Media, New Times Announce Merger; Deal to combine two largest alt-weekly chains would require Justice Department approval
by Jarrett Murphy October 24th, 2005 12:01 AM
Fifty years ago tonight, The Village Voice did not exist. Then on October 26, 1955, it did—just like that. And if all goes according to the plans announced late Sunday, in a few months the Voice will be part of a new national alternative newspaper giant. Just like that.
After months of buzz and rumor, Village Voice Media with its six weeklies is seeking to merge with New Times, the other big daddy in the world of alternative papers, executives of the two firms revealed. If the Justice Department approves the deal, the combined chain would encompass publications in 17 of the nation's biggest markets. The DOJ is likely to take more than a cursory glance at the merger, since its last encounter with the chains was the consent decree it demanded after the two firms swore a sort-of noncompetition pact in the Los Angeles and Cleveland markets. Village Voice Media CEO David Schneiderman says the merger will probably take two to six months to gain a federal green light.
At issue in the review will be whether the new company would crowd smaller alternative weeklies out of the advertising market. The New York Times reports that the chain’s publications “would represent roughly 25 percent of the 7.6 million in weekly circulation” for members of the Association of Alternative Newsweeklies. According to The New York Times:
“The merged company, which will continue to use the name Village Voice Media, is effectively an acquisition by New Times, whose current shareholders will own 62 percent of the new company and hold five of nine board seats.” ...
<http://villagevoice.com/news/0543,murphynews,69260,2.html>
Carl