Fairfax CEO Greg Hywood addresses staff react to announced Nine merger

Fairfax CEO Greg Hywood addresses editorial staff worried about their futures under the proposed merger with Nine.

Two of Australia’s oldest media firms, Nine and Fairfax, are merging to create a new $4.2bn broadcasting and publishing giant.

Fairfax CEO Greg Hywood has addressed staff about the proposed merger with Nine telling them that the shoe was now on the other foot as he was “announcing his own redundancy’’.

During the afternoon briefing in Sydney, Mr Hywood, who has overseen a significant redundancy program to reduce editorial costs, vowed that “the independence of what we do is not under threat”.

“We work under a charter of editorial independence and that was absolutely embraced and accepted officially by the Nine board last night as they signed off on the deal,” Mr Hywood told staff. “If this merger takes place, you can all be confident that the culture of independent journalism will not just survive but thrive.”

Fairfax journalists reacted angrily to the news this morning that the 177-year-old media brand will cease to exist under the proposed merger with Nine. Under the planned deal, the company will be known as Nine and run by current Nine chief executive Hugh Marks. Three current Fairfax directors will be invited to join the board of the combined business, which will be chaired by Nine Chairman, Peter Costello, and include two further current Nine directors.

Monumental day in Australian media history Greg Hywood addresses the floor of The Sydney Morning Herald, the oldest newsroom in the country. pic.twitter.com/dz0i8Cp4nz

— Sir Hornbag (@hornery) July 26, 2018

Greg Hywood addresses #Fairfax staff... says ‘independence of what we do is not under threat’. Editorial independence ‘embraced by Nine board’ last night. pic.twitter.com/RNARyEvqVl

— Peter Hannam (@p_hannam) July 26, 2018

Following the briefing with staff at Fairfax’s Sydney office, journalists held a media conference.

“No one could argue that it is not a really sad day for those people who have worked under Fairfax Media,” Fairfax investigative journalist Kate McClymont said.

“But I think our readers ... I’m not sure that they actually care who owns us, as long as our journalism is good, as long as our investigative journalism continues to shine a light. I think that’s what people care about more than anything.

“I think the problem for the media industry is that we have to find some sustainable model. Journalism, especially the kind of journalism that I do as an investigative journalist, it is not cheap. So the reality is we do have to find a sustainable model that will fund the kind of journalism that our society requires.’’

Asked about what kind of journalism the merged entity might produce, McClymont quipped: “I am brushing up on my welfare cheats as we speak. I am all set for a whole new career ... no,” she smiled.

“I think that they are two completely different entities. Channel 9 does what it does well, I think we do what we do well, and this is the big uncertainty. As Hugh Marks and Greg Hywood said today, you know, the mastheads will go on as they are for the foreseeable future. It’s what’s over the horizon that no one knows but if the print products can stay as they are and Channel 9 does what it does, I’m just hoping that we might have a healthy and viable media business, which might be good for all of us.”

In a note to staff earlier today, Hywood said while the proposed new company would be known as Nine, “there will be plenty of Fairfax Media DNA in the merged company and the board’’.

However, staff have taken to social media to express their concerns over the merger and what impact it will have on the publisher’s journalism.

Sydney Morning Herald journalist Kate McClymont was in disbelief, while fellow colleague Peter Hannam wrote that the news “hasn’t fully sunk in”.

So after 150-plus years this is all we get: “I would like to thank everyone for their contribution to Fairfax” https://t.co/GHjXMRTX2f

— Kate McClymont (@Kate_McClymont) July 25, 2018

Hasn't fully sunk in here at @smh but fair to say staff are particularly worried. It's a takeover by Nine. pic.twitter.com/gsRxhQdzZ1

— Peter Hannam (@p_hannam) July 25, 2018

Fairfax journalist Kate McClymont.

Other Fairfax staff tweeted in agreement, distraught at the loss of the brand name and anxious about what’s to come, with one tweet suggesting “Fairfax Media will cease to exist under the merger”.

As always, @Kate_McClymont gets to the nub of it. 150 years of history wiped away in six paragraphs and a “thanks for your contribution”.

— Michael Koziol (@michaelkoziol) July 25, 2018

"The merged company will be called Nine". I've spent most of my working life at Fairfax. I want to cry.

— Katharine Murphy (@murpharoo) July 25, 2018

Fairfax Media will cease to exist under a huge merger with Nine announced by Fairfax boss Greg Hywood this morning pic.twitter.com/eg0NJ3ENp4

— Michael Koziol (@michaelkoziol) July 25, 2018

One post highlighted that “Nine will review the scope and breadth of the combined business, to align with its strategic objectives and its digital future”.

This seems to be an important aspect of the merger - Nine gets to "review" the new business "to align with its strategic objectives". pic.twitter.com/FZAFjvPm6q

— Helen Davidson (@heldavidson) July 25, 2018

Subject to regulatory clearance, it is anticipated that the merger will complete before the end of this calendar year.

Staff gathered in the newsroom to listen to a conference call by Nine and Fairfax management with media and analysts this morning.

.@smh staff listening to Hugh Marx... the proposed CEO if Nine’s takeover of Fairfax. (Nine approached Ffx in early July, outgoing Ffx boss Greg Hywood just said.) pic.twitter.com/q3U42KhuQd

— Peter Hannam (@p_hannam) July 26, 2018

Fairfax Audience and Innovation editor Conal Hanna shed light on the situation, tweeting that “being part of a more diverse group” could be a good thing. Director of Immediate Communications Chris Urquhart defended Nine Network, noting A Current Affair and 60 Minutes both won Walkleys last year.

Understand people's concerns but being part of a more diverse group of brands could be a good thing for SMH, Age journalism. The pressure for scale (ie clicks) becomes a lot less acute. #fairfax

— Conal Hanna (@conalhanna) July 25, 2018

A lot of people putting the boot into Nine’s journalism today. A Current Affair and 60 Minutes both won Walkleys last year. The current Kennedy Awards journalist of the year is a Nine News reporter.

— Chris Urquhart (@chrisurquhart) July 26, 2018

Though journalist Brigid Delaney, who has been employed by both media companies, said Fairfax staff are “in for a wild ride and a very different culture”.

I've worked for both Nine and Fairfax. Hang onto your hats Fairfax people - you're in for a wild ride and very different culture

— Brigid Delaney (@BrigidWD) July 26, 2018

Prime Minister Malcolm Turnbull welcomed news of the merger, saying it would have to be approved by regulatory bodies such as the ACCC, but he did not expect it would face any hurdles.

“It’s obviously been made possible by the changes in media ownership laws that we’ve made,” Mr Turnbull told Tasmanian radio station LAFM.

“To be frank, I welcome the announcement. Fairfax is a great Australian newspaper company, the Nine Network of course was the first television station to be on air with Bruce Gyngell you’ll remember doing the first broadcast.

“I used to work for the Nine Network in the past, in my journalistic and legal past, and I think bringing them together will strengthen both of them.’’

Fairfax chief executive Officer Greg Hywood will address staff at 3pm, with Fairfax employees and representatives of the Media, Entertainment and Arts Alliance holding a conference at 4pm.