Democrat-Gazette, Stephens Media seek to merge news operations in northwest Arkansas

Democrat-Gazette, Stephens Media seek Ark. merger

LITTLE ROCK, Ark. — Stephens Media and WEHCO Media Inc. announced Thursday a joint venture that would merge two longtime competitive newspapers in fast-growing northwestern Arkansas.

Both companies said on their Web sites they asked the Justice Department for approval.

Under the plan, Las Vegas-based Stephens Media would put its flagship paper in the region, The Morning News, up for sale. The Arkansas Democrat-Gazette would handle business operations and cover regional and state news, while Stephens would oversee local newsrooms in Bentonville, Fayetteville, Rogers and Springdale.

The local papers would be wrapped around a zoned edition of the Little Rock-based Democrat-Gazette.

Northwestern Arkansas is the home of Wal-Mart Stores Inc., the world’s largest retailer, and Tyson Foods, the world’s largest meat producer. The Little Rock-based Democrat-Gazette began publishing a zoned edition at Lowell amid a population boom a decade ago.

In the fight for readers, both media companies added staff, but amid the economic downturn and a general decline in newspaper readership, both either laid workers off or instituted furloughs in an effort to control costs.

“The Morning News and the Arkansas Democrat-Gazette’s Northwest Edition have suffered significant financial losses during the current economic recession,” Stephens Media said on its Web site. “Both companies have employed various cost-cutting strategies, but despite these measures, the newspapers continue to have significant operating losses.”

Both companies would have an equal financial interest after The Morning News is put up for sale.

“If someone comes along and buys it, then we’ll continue to compete with The Morning News and this merger won’t be consummated,” said Walter Hussman, chief executive of Little Rock-based WEHCO. “We suspect that won’t happen.”

Stephens Media owns newspapers at Fort Smith and Pine Bluff, along with several weeklies in Benton and Washington counties and in Missouri. The Arkansas Democrat-Gazette Inc. also owns the Northwest Arkansas Times and the Benton County Daily Record in northwestern Arkansas.

Under the agreement, a limited liability company called NorthwestArkansas Newspapers LLC would be formed.

The Morning News has a circulation of 31,491 on weekdays and 38,947 on Sundays. The Democrat-Gazette has a circulation of 180,314 statewide weekdays and 269,879 Sundays. It does not break out figures for its zoned edition.

In 1991, the Arkansas Democrat purchased the Arkansas Gazette, the oldest continuously published newspaper west of the Mississippi River, and created the Arkansas Democrat-Gazette. William E. Woodruff founded the Gazette at Arkansas Post in 1819 and moved it to Little Rock two years later.