Australian Associated Press (AAP) is in the final stages of a sale of its newswire to a consortium of impact investors and philanthropists.
The consortium, headed by former News Corp CEO Peter Tonagh, will continue to provide breaking news, public interest journalism, sports coverage and news photography to media outlets.
However, there will be some job losses. The plan is to have 85-90 AAP staff, including 70-75 editorial staff, and management, IT and support personnel. AAP FactCheck service is included in the deal.
The owners of AAP -- Nine, News Corp, Seven West Media and Australian Community Media -- in April announced its closure, saying the national news agency formed 85 years ago was unable to compete with free information on the internet.
AAP and the consortium have reached commercial terms and will now negotiate to complete a binding sale contract by the middle of June.
Peter Tonagh says AAP will be supported by a group of investors and philanthropists committed to independent journalism.
“We live in a time where trusted, unbiased news is more important than ever. AAP has always delivered on that and we are committed to seeing that continue into the future,” he says.
“I’m looking forward to working with the AAP team to continue its great work and to find new commercial opportunities to ensure its long-term survival."
Other parts of the AAP Group -- Medianet, Mediaverse, AAP Directories, Pagemasters and Racing operations -- will be retained by current shareholders.
AAP CEO Bruce Davidson: “I am pleased that, after months of discussions with various parties, it appears we have been able to secure a new home for AAP’s legacy of trusted news."
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