Gannett newspaper to close amid cost-cutting
Gannetts, the parent company of The Indianapolis Star, is moving its newspaper business to New York, and the news service will close its headquarters in Indianapolis in 2019, the newspaper said Friday.
The Indianapolis-based company announced the change Thursday.
Gannets is the largest newspaper publisher in the United States, with more than 500 newspapers, including more than 300 in the Indianapolis metropolitan area.
The newspaper said in a statement that it will announce its future plans “in the coming weeks.”
The Indianapolis News-Journal is also leaving Indianapolis.
The company said in an earlier statement that its decision to close the Indianapolis-area newsroom was “a strategic decision made for the benefit of our shareholders and the newspaper community.”
“We are grateful for the strong support of the community and its leaders, and we look forward to continuing our mission in Indianapolis,” Gannet CEO John Bogle said in the statement.
The newsroom’s newsroom will remain open, but the Indianapolis Star will move to New Jersey.
Gatt, the founder and chairman of The Dow Jones, also is leaving The Dow, a stock index company, to start a new company in New York.
The Dow will be the largest stock index in the world.
The Star’s closure is a significant loss for Indianapolis and the broader Indiana economy, which was on the verge of breaking out of recession.
The paper reported that it would continue to print about $150 million in quarterly revenue, up from $60 million a year ago.
The IndyStar reported that the company is making $250 million to $300 million a quarter in profits.
“We’re going to keep doing what we do,” said Tom Gatt.
Guttman, the paper’s publisher, said he was “delighted” to have a new business partner.
“I think the news is going to be a lot better for Indy’s economy, and I think it’s going to create a lot of jobs in Indianapolis and around the region,” he said.
“And we think it will have a huge impact on the newspaper industry and the community.”
IndyStar reporter Joe Binder contributed to this report.