AUSTRALIAN Associated Press (AAP) appears to have been saved from closure after the newswire’s chief executive today announced that a sale has been tentatively agreed with a philanthropic-led consortium.

The agreement offers a lifeline to AAP at a time of intense financial difficulties for the media sector, made worse by the economic impact of the coronavirus pandemic.

Three months after staff were told that AAP would shutter, management announced that a consortium, including former News Corp chief Peter Tonagh, is poised to buy the business.

“I am extremely pleased to announce that AAP is expected to be sold to a consortium of impact investors and philanthropists,” said CEO Bruce Davidson in a message to staff.

The 85-year-old wire will continue to cover breaking news, public-interest stories, sports and photography, but there will be further job cuts, with only half of its previous 180 positions to be offered under the new owners.

“They see this as a philanthropic venture, and will have the patience to work on new commercial opportunities to aim for long-term viability,” said Davidson.

The consortium is committed to continuing AAP’s legacy of unbiased and reliable journalism, said Tonagh in a statement.

“AAP has always delivered on that, and we are committed to seeing that continue into the future.”

In March, the wire’s major shareholders, namely Rupert Murdoch’s News Corp and broadcasting and newspaper group Nine Entertainment, pulled out in a surprise decision that fuelled fears of a further concentration of Australia’s media.

But weeks later, several offers to buy the business put plans to close it by June 26 on hold.

“Finally, a good news story for an industry that has taken a hit lately,” tweeted AAP editor-in-chief Tony Gillies after the announcement.

“It has been inspiring to witness the poise and resilience of AAP’s news team in the 95 days since its March 3 closure announcement… (the) new owners have secured Australia’s best.”

The rescue plan for AAP comes as the Australian media industry struggles with dwindling revenues. Last month, News Corp announced that it will stop printing more than 100 regional and local newspapers, blaming a collapse in advertising made worse by Covid-19. – AFP, June 5, 2020.