Nochi Dankner is planning mass layoffs at Hebrew daily "Ma'ariv" and closing local papers, nine months after acquiring control of Ma'ariv Holdings Ltd. (TASE: MARV-M), because of the paper's financial situation and the general crisis in the advertising industry.
30 "Ma'ariv" correspondents, editors, and commentators have received summons for hearings before being fired, including Shalom Yerushalmi and Ruth Sinai. The paper's environmental correspondent, Aviv Lavi, has already been fired.
Ma'ariv Holdings is waiting until the last minute to publish its financial report for the third quarter. Although its share price has been stable, the 21% yield on its bond reflects investors' worry about the company's ability to meet its commitments.
The crisis in the advertising industry is affecting the media industry, and has worsened since the summer's social protest. Many media groups are cutting costs by firing employees and other measures. Within the past two weeks, internet portal Walla Communications Ltd. (TASE: WALA) has fired more that 10 employees, including top editors and correspondents, and rival Nana10 has fired 15 employees, including from its Channel 10 news desk. "Yediot Ahronot's" online edition yet is firing a tenth of its staff, and they layoffs will reportedly spread to the hard copy edition.
"Ma'ariv" said in response, "Regrettably, due to the economic situation we are forced to cut costs and take leave of several news employees and correspondents… There is no connection to IDB Holding Corp. Ltd. (TASE:IDBH) or its executives."
As for the closing of the local papers, "Ma'ariv" said, "No comment."
Published by Globes [online], Israel business news - www.globes-online.com - on November 29, 2011
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