Jamaica's two largest news entities - 180-year-old Gleaner Company and the 65-year-old Radio Jamaica - on Wednesday announced that they would combine their media operations to create the most powerful multimedia outlet in the Caribbean.
"Survival of Jamaican media in what is a very challenging local climate is the dominant reason" for the decision to combine operations, the companies said. "The local media landscape is dominated by numerous small entities operating from weakened and inefficient financial bases, which threaten the long-term sustainability of the industry."
The transaction will be a stock-for-stock deal, in which Radio Jamaica Limited will issue and exchange 1.2 billion shares on a one-for-one basis to shareholders of The Gleaner Company Limited for 100 per cent of a newly formed subsidiary, Gleaner Company (Media) Limited (GCML), which will hold the assets of the media entities of The Gleaner Company.
The transaction will require the approval of shareholders. Hence, both companies will be required to hold extraordinary general meetings. The process could take up to six months to be finalised.
After the transaction, The Gleaner Company, with its non-media activities, will undergo a name change to avoid future confusion with the media brand to be operated by the merged group.
Radio Jamaica Limited will be the parent company.
The two multimedia companies said "the aim of the merged company is to use the combined strengths of each company's respective credible and award-winning journalism and other content to better inform, educate and entertain the Jamaican public on things relative to Jamaicans everywhere.
The merged company will be led by Lester Spaulding as chairman, with Oliver Clarke as deputy chairman. Gary Allen will be the chief executive officer (CEO) and Christopher Barnes, the chief operating officer (COO). The entity will initially have a 14-member board, seven from Radio Jamaica and seven from The Gleaner Company.
"This is the most exciting development for media in over 50 years," said Allen, who is currently managing director of Radio Jamaica Ltd.