Sydney (AFP)
Australia's only national news agency, the Australian Associated Press (AAP) appears to have been saved after its chief executive announced plans for a takeover by a consortium of philanthropists on Friday.
This agreement is a real lifeline for AAP at a time when the media sector is experiencing serious financial difficulties, made worse by the economic consequences of the coronavirus pandemic.
Three months after the closure was announced, management said on Friday that a consortium, to which former News Corp chief Peter Tonagh belongs, is about to buy the news agency.
"I am very pleased to announce that AAP should be sold to a consortium of philanthropists and those interested in making an investment" that is socially beneficial, "said Bruce Davidson, CEO of AAP, in a message to the staff.
This agency, which was created 85 years ago, intends to continue to cover current events but also subjects of general interest as well as sport and photography.
However, it will not cut jobs and only around half of the 180 employees should be able to stay.
"They see this as a philanthropic endeavor and will have the patience to work on new business opportunities in order to achieve long-term sustainability," said Davidson.
The consortium is committed to continuing AAP's work in impartial and reliable journalism, said Tonagh.
In February, the leaders of this agency announced its closure, its main shareholders - News Corp Australia and the press group Nine Entertainment -, considering that it was "no longer profitable".
A few weeks later, various takeover offers had made it possible to suspend the closure plan that had been announced for June 26.
"Finally good news for an industry that has taken a hit lately," tweeted AAP editor Tony Gillies after the announcement.
This AAP rescue plan comes at a time when the Australian media are experiencing a significant drop in income.
At the end of May, the group of the tycoon Rupert Murdoch News Corp announced that it would stop printing more than 100 titles of the local and regional press in Australia, because of a collapse of the advertising incomes which was worsened by the new coronavirus epidemic.
© 2020 AFP