Hearst Newspapers Acquires Austin American-Statesman. Thirty-five-Member Union Waits to See, by Justin Sayers, Austin Business Journal, Feb. 19, 2025

From the Austin Business Journal:

 

 

"This acquisition complements Hearst's set of newspapers and reinforces our commitment to delivering high-quality journalism," Jeff Johnson, president of Hearst Newspapers, said in a statement. "It aligns with our strategy to invest in thriving communities with strong potential. We look forward to welcoming the Austin American-Statesman team to Hearst, joining 2,300 committed Hearst Newspapers professionals across the country."

In 2018, the Statesman was sold for $47.5 million to New York-based publishing company GateHouse Media after more than 41 years of ownership by Atlanta-based Cox Enterprises Inc. GateHouse Media acquired Gannett Co. in a $1.4 billion deal a year later that created the nation's largest newspaper chain.

“The Austin American-Statesman will continue to thrive and steadfastly serve the Central Texas community like we have for the past 154 years,” Statesman executive editor Courtney Sebesta said in a statement. “Our dedicated journalists will continue to hold those in power to account and inform our readers with quality journalism to help navigate their lives. We look forward to beginning our relationship with Hearst.”

Statesman officials said in a news story that the proceeds of the sale are expected to be used for debt reduction. Gannett Chairman and CEO Michael Reed said in a statement that the sale was a strategic decision for the company. In September, Gannett announced plans to pay down at least $110 million in debt by the end of 2024 through sales of businesses, real estate holdings and non-strategic assets. Gannett, also based in New York, reported a little more than $992 million in debt as of September.

The move comes about three months after the Statesman reached an agreementwith its 35-member union, the Austin NewsGuild, on a two-year contract to raise journalists' base pay, among other benefits, after years of heavy staff turnover. Additionally, the Statesman's former executive editor, Manny Garcia, left last year and was replaced by Sebesta, a longtime staffer.

Cat Vasquez, vice chair of the Austin NewsGuild, said news of the sale "came as a bit of shock," describing union members as "in kind of a wait-and-see mode" in terms of the deal.

"I've been at the paper for 19 years, going on 20 years," said Vasquez, who works in the sports department. "The past probably decade has been a real rollercoaster, but the one thing that keeps me steady is the work we do and the fact we're unified and together and we have this collective here that really is focused on serving the community and doing our job."

The newsroom was notified of the sale during an all-hands meeting on Wednesday morning that been called shortly before, sources told the Austin Business Journal. Newsroom staffers were anxious about the change but hopeful that it would be a positive step forward for the paper after years of instability, they said.

The Statesman was founded in 1871 and has been named Texas Newspaper of the Year three times by the Texas Associated Press Managing Editors. It more recently was recognized as a finalist for the 2023 Public Service Pulitzer Prizes and a 2024 Edward R. Murrow Award winner for ongoing coverage of the 2022 Uvalde school shooting.