SWMH sells regional newspapers – what does that mean for employees?

SWMH sells regional newspapers – what does that mean for employees?

Südwestdeutsche Medienholding (SWMH) announced today that it would sell its regional newspapers in Baden-Württemberg. The affected newspapers include renowned titles such as “Stuttgarter Zeitung” and the “Stuttgart News” as well as the “Esslinger Zeitung” and the “Black Forest Messenger”. The planned sale will take place to the Neue Pressegesellschaft (NPG), which would like to own the majority of the newspapers mentioned.

The exact time of the sale and the purchase price are not yet known. According to information from Deutschlandfunk The approval of the antitrust authorities could come within the next few weeks. A spokeswoman for the NPG expects that a communicative statement can be expected within around four weeks. If this sale goes through, the new newspaper alliance would achieve a circulation of around 700,000 newspapers.

Focus on core activities

With the sale, SWMH plans to focus more on its main brand “Süddeutsche Zeitung”, to concentrate. This strategy is pursued by the holding company, which is one of the largest newspaper publishers in Germany and has around 4,500 employees. However, this number does not refer to delivery workers who have separate employment relationships.

The takeover of these important regional newspapers could further increase press concentration in Baden-Württemberg. Deutschlandfunk reports that subordinate companies are expected to remain in place, while the specialist media division will be transferred to Medien-Union Ludwigshafen, which is already a shareholder in SWMH.

Impact on employees and the market

So far, the impact of the sale on employees is unclear, but employees of the “Black Forest Messengers” Concern and speculation about possible job losses. However, the editorial business will initially continue unchanged.

Baden-Württemberg is a central location for the press, which represents a significant part of the regional economy with its diverse media offerings and innovative publishing strategies. MFG Baden-Württemberg points out that the publishers of newspapers and magazines are an essential part of the economically strong group in the region.

The challenges for the press market are great: digitalization requires new business models and sales channels. Although digital offerings are evolving, the decline in willingness to pay for content is a cause for concern. The future of journalism in the region will crucially depend on how actors respond to these dynamics.