Iceland’s two largest daily newspapers Morgunbladid and Fréttabladid merged last week. Fréttabladid will henceforth be published by Árvakur, which also publishes Morgunbladid and free daily 24 Stundir.
Following the merger, the publication of 24 Stundir has been ceased, ruv.is reports.
CEO of Árvakur Einar Sigurdsson said these changes had been necessary to secure the continued circulation of Morgunbladid, which is sold via subscriptions and in retail, and Fréttabladid, which is distributed for free to homes in Iceland.
More than 20 people will lose their jobs as a consequence.
Árvakur will pay 365 media company for the takeover of Fréttabladid with shares and 365 will thus hold a 36.5 percent stake in Árvakur.
A statement from Árvakur emphasizes that both newspapers will have separate and independent editorships and that only the cost of producing the newspapers will be merged. The merger was necessary because of rising paper costs, dropping advertising revenue and high debts of both companies.
The Competition Authority and shareholders in Árvakur and 365 have yet to agree to the merger.
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