As the Bauer Media and Pacific Magazines deal continues to drag on, due to the economic strain of the coronavirus, Bauer may let go of up to 100 employees and suspend magazine titles, according to reports.
As reported on The Sydney Morning Herald, Bauer is set to meet the new deadline of the Seven West Media Pac Mags deal, but not without further consequences.
Industry personnel from Bauer and Pac Mags told the SMH that the editors from the two companies are in talks to formalise plans for the joint business.
The $40m deal has been on the rocks since it was given the green light from the ACCC, with Bauer Media ANZ CEO Brendon Hill evading scheduled media requests and had been silent on the state of the sale.
The deal was originally expected to be completed by April 9.
Insider suggested the deal has to go ahead and the contract means Bauer is unable to walk away or ask for a lower price, despite some suggestions that Pacific Magazines is now worth $20m amid the coronavirus crisis.
And now, sources have told the SMH, Bauer is considering around 100 redundancies and temporarily halting production of some of its print magazines, including Harper’s Bazaar and Elle.
The layoffs are believed to pertain to the commercial side of the business and are additional to previously revealed cuts as part of the acquisition.
Bauer has already stopped the use of freelance journalists and suspended staff expense claims.
The SMH is reporting all decisions on the deal are being led by Germany, which is where Bauer Media’s parent company Heinrich Bauer Verlag KG operates from.
